Germany likely to post solid Ifo numbers

Today's Ifo numbers for October should reduce worries that the German economy is slowing fast due to a loss of momentum in Emerging Markets. The slowdown of China and other countries is a of course a challenge for the German growth model, but remember that most exports go to economies that are either doing well (US, UK) or recovering (Euro area).

Expectations are often leading the assessment of the current situation. Therefore it could easily be that the fall in the current assessment (to the lowest level since last March) will be at least partly reversed in November.

"Sentiment in the domestically orientated retail and construction sector is high and far above the long-term averages. We currently expect GDP growth of 0.4% q/q for the Q3 and Q4", said Nordea Bank.