Market reaction to the details of the US government’s plans to use huge sums of taxpayer’s money to stabilise the financial system will overshadow a light week for economic data releases, which will bring further evidence of the corrosive effect of the credit crunch on the wider economy.

Ben Bernanke, chairman of the Federal Reserve, and Hank Paulson, Treasury secretary, will provide testimony to Congress this week and should put flesh on the bones of their plans to deal with toxic mortgage assets.