IMF chief debt inspector Poul Thomsen leaves after meeting with...

IMF chief debt inspector Poul Thomsen leaves after meeting with Greece's Prime Minister Lucas Papademos in Athens on Sunday. (Feb. 5, 2012) Credit: AP

Europe will again be at the center of investors' focus this week as the U.S. earnings season passes the halfway mark and there is little on the economic calendar to give the market direction.

Economic data expected this week includes weekly initial jobless claims, the Thomson Reuters/University of Michigan's consumer sentiment index and international trade figures.

Improving data helped push the S&P 500 index up nearly 7 percent for the year, highlighted by Friday's stronger-than-expected jobs report.

"It's the old ping-pong game. Today it is the U.S., tomorrow it is Europe again," said Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, N.J.

Greece remains at the forefront of the eurozone crisis as the government struggles for agreement on fiscal reforms that would be accepted by political leaders and private bondholders as it tries to avoid a disorderly default.

Talks on a bond swap and 130 billion euros in bailout funds have been continuing for weeks before a March deadline when 14.5 billion euros of bonds come due.

Hopes that a deal was on the horizon dissipated on Friday as eurozone finance ministers delayed a meeting scheduled for Monday.

Latest Videos