Danske Bank analysts point out that yesterday's IFO data out of Germany supported the stabilisation signals from the new order component from German manufacturing PMIs last week. 

“Just as in the previous month, the improvement in expectations was quite broad-based across industry, services and especially trade. In contrast to Friday's PMIs, which indicated a further slowdown in German service sector activity, IFO signals that services firms see robust demand and expect activity still to pick up in the coming six months. The truth is probably somewhere in between, but bottom line is that Germany is edging slowly but steadily away from downswing territory. That said, there is still some distance to cover before we are back in upswing territory, especially for manufacturing, which by all indications will stay in recession territory in Q4.”