Following are five big themes likely to dominate the thinking of investors and traders in the coming week, scheduled events and the Reuters stories related to them.
(1) EDGING HIGHER
Euro zone peripheral debt and equities have rallied this year in anticipation of economic recovery in the bloc's most indebted countries. How far the rally has to go may to some degree depend on euro zone flash PMI data for January due in the coming week. If the picture is one of a continuing pick-up, bond yields, already heading towards four-year lows in Spain and Portugal and close to eight-year lows in Ireland, could drop further.
* Irish debt catching up to euro zone mainstream
* Investors lap up Spanish bonds at triple auction
* Spain, Italy grab historic chance to lengthen life of debt
* Euro zone flash PMIs due Jan. 23
(2) TIGHTENING UP
A strong PMI could also put upward pressure on euro zone money market rates, which have spiked higher this month as surplus cash in the financial system has fallen to a two-year low. The Eonia overnight rates at which banks lend to each other are, discounting month- and year-end distortions, at their highest since July 2011 and above the European Central Bank's 0.25 percent refinancing rate. With ECB chief Mario Draghi having said an unwarranted tightening in money market rates could trigger further policy action, markets will be on alert for any further rise in Eonia.
* No reason for "irrational inflationary fears" - ECB's Weidmann
* Money market reports
(3) DOOMED TO DISAPPOINT?
Europe's fourth-quarter earnings season kicks off on Tuesday with updates from Novozymes, SAP and Unilever. ASML, Bankinter, Logitech, Nokia are also among those reporting. Most analysts say earnings will need to improve this year if 2013 double-digit gains for equities are to be repeated. Overall, StarMine forecasts that 2013 earnings will undershoot consensus by 0.7 percent in Europe.
* European, U.S. earnings diaries
* Peripheral equity surge to stumble over earnings
* European equity options traders eye Q1 fall then later rally
* U.S. profits could bounce in 2014 if economy gains steam
(4) DOLLAR OUT OF DOLDRUMS
The dollar's fall since December's shockingly weak payroll numbers appears to have been a blip. Weekly jobless claims data on Jan. 16 suggested last month's sharp slowdown in jobs growth would be temporary and that the Federal Reserve would not alter its plans to wind down its bond-buying stimulus. Other dollars are faring less well. Weak jobs data cast doubt