TD Securities' analysts note that German factory orders surged by 2.5% m/m in June, led by a surprising 5.0% m/m jump in foreign orders.

• “Given the global backdrop, this is more likely to be a one-off rather than a turnaround in the trend. Other details of the report show manufacturing shipments posting a -0.1% drop on the month. This is roughly consistent with the consensus forecast of -0.5% for tomorrow's German IP data, but we continue to look for downside risks as the relationship between the two series has broken down lately.”