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TAKE A LOOK-Five world markets themes in the coming week

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LONDON, Jan 18 (Reuters) - Following are five big themes likely to dominate the thinking of investors and traders in the coming week and the Reuters stories related to them.

1/ FX SWINGS

Swings in the yen and the Swiss franc risk becoming more exaggerated and less predictable, if options prices are to be trusted. In Japan, a mix of policy and rhetoric has been driving the yen lower. But mixed messages in the past week have made yen trading less of a one-way street and boosted options prices. Meanwhile, Swiss franc implied volatility and demand for franc put options are rising as the currency slides away from the ceiling imposed by the Swiss National Bank. While Switzerland's manipulation of its currency may have largely passed without international rebuke, Japan may find it harder to fly under the radar given the size of its economy. A central banker from Russia, which holds the G20 presidency this year, has already warned of the risk of currency wars. Monday's Eurogoup will be a chance to see whether other euro zone finance ministers share Jean-Claude Juncker's view that the euro's exchange rate is "dangerously high" and show how likely the euro zone is to get sucked into this debate. > BOJ eyes open-ended asset buying, agrees new inflation goal > Bets grow on sustained Swiss franc weakness > Russia's G20 coordinator seeks to calm currency tension > Sharp gains leave euro vulnerable

2/ POLICY ACCOMMODATION

The Bank of Japan is the most immediate focus for investors keen on central bank monetary accommodation given it has agreed to raise its inflation target and will, in the coming week, consider whether it should make an open-ended commitment to buying assets. Still, euro zone and UK data has the potential to shape the market's expectations of when the European Central Bank and the Bank of England might ease policy further. Euro zone money market prices show that while the ECB is no longer seen cutting interest rates in the next three months, its next move is still expected to be an easing. If data shows the region's economy significantly lagging the U.S. recovery, these expectations could shift. However, decoding the message embedded in short-term rates could become trickier if the first repayments of the ECB's three-year loans start to generate volatility in money markets. > BOJ seeks to selectively satisfy Abe over easing > European banks to pay back ECB life-support cash > Rolling money market report

3/ SPENDING AND FUNDING

The yen is not the only Japanese asset to have reacted to expectations of Japanese policy action. Short- and medium-dated Japanese government bond yields have fallen while longer-dated yields have risen, causing a steepening in the Japanese yield curve. These trends could persist given Japan's fiscal and monetary policy plans. By contrast, Europe has less room for fiscal manoeuvre. Investors' focus is therefore firmly on the extent to which peripheral euro zone countries such as Italy and Spain are front-loading their 2013 funding to take advantage of relatively benign conditions and the scale of foreign demand at bond auctions and syndications. Any signs that these countries can successfully place longer-term bonds will also bolster investor confidence. > Euro zone sovereign debt supply outlook

> Latest stories on euro zone crisis > Italy eyes return to ultra-long debt market

4/ POTENTIAL PITFALLS

Implied equity market volatility is low, peripheral bonds are holding most of the ground they made in recent weeks, and growth-correlated currencies such as the Australian dollar are firm. But investors (and peripheral euro zone sovereign issuers) face risks in the coming weeks. Unresolved U.S. budget business is one, and investors who have been heartened by European Central Bank chief Mario Draghi's upbeat assessment of the euro zone economic outlook could start to reassess their holdings if data and/or the earnings season shows there is less ground for optimism. Meanwhile, the Italian elections on Feb. 24-25 could become far more of a market mover if former prime minister Silvio Berlusconi further erodes the centre-left's lead. Euro zone differences over policy are also simmering not too far below the surface, with Spanish Prime Minister Mariano Rajoy's call for the bloc's creditor countries to stimulate growth swiftly rebuffed by Germany, whose chancellor, Angela Merkel's chances of retaining power later this year may become clearer after the Jan. 20 state election in Lower Saxony. > Preparing for the unthinkable: could markets handle a U.S. default? > Berlusconi comeback threatens Italian market rally > German economy minister calls for ECB to return to core mandate

5/ EARNINGS INTEREST

The European corporate results season kicks off in earnest in the coming week after a mixed start in the United States. The outlook for Europe is gloomier than across the Atlantic, with STOXX 600 earnings expected to fall 1 percent compared with the 2.1 percent rise forecast for S&P 500 companies, according to Thomson Reuters StarMine. But that could make it easier for European firms to deliver positive surprises. SAB Miller , Unilever, and Siemens are among those reporting in Europe in the coming week, with Siemens' performance likely to attract particular interest given its bellwether status, both for global manufacturing and for Germany's exporter-heavy blue-chip DAX index. There is currently a discrepancy between analysts who delve into individual stocks and those who produce forecasts for the equity market as a whole, with the latter more pessimistic than the former. Companies' outlooks will determine which camp has to rethink. > European stocks: time to belt up for a rougher rise? > U.S. and West European earnings diaries > PC titans take notes from tablets to regain customers (Compiled by Swaha Pattanaik and Nigel Stephenson; Editing by Susan Fenton)

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