Reuters reports that German business morale improved more than expected in August, a survey showed on Tuesday, boosting hopes that companies in Europe's largest economy are recovering from the coronavirus shock.

The Ifo institute said its business climate index rose to 92.6 from a downwardly revised 90.4 in July. This was the fourth monthly increase in a row and came in better than economists' expectations for 92.2.

"The German economy is on the road to recovery," Ifo President Clemens Fuest said in a statement, adding that firms assessed their current business situation much more optimistically than in the previous month.