German industrial outlook improving

German industrial production data is due today. The country's industrial output is expected to have increased by 1.1% mom in July following a bigger than expected drop in June, says Societe Generale in a report on Monday. In contrast to the weak momentum evident earlier in the year, sentiment in manufacturing appears to have picked up over the summer, with particularly strong data reported for August. 

"This should lead to a significantly better performance in Q3 that will carry over into GDP growth. However, beyond Q3, the impact of developments in China will be key, especially in terms of confidence indicators", added SocGen.