In Germany pessimists still outnumber optimists, at least according to Monday's Ifo business confidence survey.

All over the eurozone, domestic demand is slow and investment intentions are weak. So it is unsurprising that, on interest rates, the optimists outnumber the pessimists. With the implied rate on the three-month Euribor December contract down 60 basis points since the end of March, markets are increasingly confident that the European Central Bank is on the verge of a cut.