Sentiment for the Eurozone has increased by 7.5 points to a reading of 52.7 points, above expected incline to 51.3. Gaining 8.7 points in February 2015, the indicator for the current situation in the euro area has reached a value of minus 48.4 points.

There were no major data releases from Eurozone on Thursday, so markets were focused on Greek bailout situation. Greece formally requested a six-month extension to its euro zone loan agreement on Thursday, offering major concessions as it raced to avoid running out of cash within weeks and overcome resistance from sceptical partners led by Germany. However, Germany rejected request, in line with German Finance Minister Wolfgang Schaeuble attitude that Athens could not negotiate an extension of euro zone funding without making any promises to push on with budget cuts and economic reforms.

Also, for the first time ever, ECB released its meeting minutes. Minutes from the European Central Bank's January policy meeting released on Thursday showed that most members of the Governing Council saw introducing a quantitative easing program to ward off deflation and spur economic activity as the only available option, though some other options were discussed. According to the minutes, a large number of council members were in favor of buying government debt. The minutes showed that one member urged to consider buying corporate bonds if more QE was needed, which indicates that if needed we could be seeing further monetary steps from ECB in months to come, with emphasis on inflation movement.

Friday's session was marked by French, German and Eurozone Manufacturing and Services PMI figures. French Manufacturing PMI dropped to 47.7 in February from 49.2 in preceding month. Analysts were anticipating incline to 49.7. The rate of growth was solid and the fastest since August 2011. Manufacturers, however, signalled a further drop in output, with the pace of decline quickening since January.On the other hand, Services PMI data beat market expectations on an increase to 49.9 and jumped to 53.4, highest level in 42 months.

German Manufacturing PMI was unchanged in February. Increase to 51.8 was forecasted. The rate of contraction eased, however, and was only marginal overall. Meanwhile, vendor performance continued to deteriorate, with the rate at which average delivery times lengthened little-changed from January.Services PMI rose to a 5-month high at 55.5. Analysts were predicting slightly rise to 54.3

Eurozone Manufacturing PMI rose marginally from 51.0 to 51.1, missing market expectations on and increase to 51.6 points. Growth is looking lop-sided, however, and very much dependent on the services economy where lower prices are fuelling growth, especially in consumer-facing sectors. The weakness of the manufacturing economy remains a major concern.Services PMI, on the other hand, inclined to 53.9. Analysts were anticipating incline to 53.2.

This week markets will be looking at:

German Ifo Business Climate (Monday 10:00)

Final CPI (Tuesday 11:00)

ECB President Draghi Speaks (Tuesday 15:00)

ECB President Draghi Speaks (Wednesday 17:30)

GfK German Consumer Climate (Thursday 8:00)

German Unemployment Change (Thursday 9:55)

M3 Money Supply (Thursday 10:00)

Targeted LTRO (Thursday 11:15)

German Prelim CPI (Friday)

French Consumer Spending (Friday 8:45)

Spanish Flash CPI (Friday 9:00)