Carsten Brzeski, Chief Economist, Eurozone and Global Head of Macro for ING Research, notes that another increase in Germany's industrial orders in July masks an enormous twist between domestic and foreign demand.

"German orders increased by 2.8% month-on-month in July, from 28.8% MoM in June."

"On the year, industrial orders were still down by 7.3% making it the first three-month increase since late 2017. The increase, however, masks a remarkable twist between domestic and foreign orders. While domestic orders dropped by some 10%, foreign orders increased by more than 14%. In any case, both domestic and foreign order books were at more than 90% of their pre-crisis levels in July."

"The hopes for a strong rebound stay alive, as much as the fears of a weak recovery after the initial rebound."