ZEW Economic Sentiment for Eurozone also beat market expectations on incline to 37.6 and increased to 45.2 points. The indicator for the current situation in the euro area has improved for the first time since May 2014. Gaining 5.7 points in January 2015, the indicator has a current value of minus 57.1 points.

Focus of the Thursday's session was on ECB Meeting. ECB announced an expanded asset-purchase program, including private and public securities, of up to 60 billion euros ($69 billion) a month to spur growth and counter deflationary pressures. ECB decision reflects adverse developments since potential for second round effects have increased.

Market based inflation expectation measures worsened, and economic slack is still sizeable, therefore action is needed to achieve inflation target. Action will underpin inflation expectations, measures will ease policy stance further, and help push inflation higher, though inflation is seen very low and negative in coming months and is unavoidable. We can expect inflation rise in in 2015 & 2016.

Friday's European part of the session was marked by French, German and Eurozone Manufacturing and Services PMI figures. Flash France Manufacturing PMI climbs to 49.5 from 47.5 in December, what is an 8-month high, and above expected increase to 48.1. January data pointed to a further rise in new business at French private sector companies, which was the second in successive months. Although quickening to a ten-month high, the rate of expansion remained marginal. Flash France Services Activity Index fell to 49.5 missing forecast on rise to 50.9.

Flash Germany Manufacturing PMI dropped to 51.0 from 51.2 in December, what is 2-month low. Analysts were predicting increase to 51.8. Private sector employment rose despite the introduction of a national minimum wage at the beginning of the year, as companies reported increased new orders and higher business requirements. Flash Germany Services Activity Index rose to at 52.7 from 52.1 in December, what is a 3-month high.

Both Eurozone Manufacturing and Services PMI were in line with market forecasts. Flash Eurozone Manufacturing PMI rose to 51.0 from 50.6 in December, what is a 6-month high, while Flash Eurozone Services PMI Activity Index increased to 52.3 from 51.6 in December what is a 3-month high.The recent oil price slump is also already feeding through to reduced prices, with average prices charged by companies dropping at the fastest rate for almost five years.

This week markets will be looking at:

German Ifo Business Climate (Monday 10:00)

GfK German Consumer Climate (Wednesday 8:00)

German Prelim CPI (Thursday)

German Unemployment Change (Thursday 9:55)

M3 Money Supply (Thursday 10:00)

Spanish Flash CPI (Friday 9:00)

Spanish Flash GDP (Friday 9:00)

CPI (Friday 11:00)

Unemployment Rate (Friday 11:00)