Germany’s manufacturing PMI rose unexpectedly last month, preliminary data showed on Monday.In a report, Markit Economics said that German manufacturing PMI rose to a seasonally adjusted 55.1, from 54.3 in the preceding month. Analysts had expected German manufacturing PMI to remain unchanged at 54.3 last month. German service sector activity rose more-than-expected last month, official data showed on Monday. In a report, Markit Economics said that German Services PMI rose to 54.1, from 50.9 in the preceding month. Analysts had expected German Services PMI to rise to 51.5 last month.

Focus of the Tuesday's session was on German Business Confidence data. The European Central Bank has expressed confidence that a “moderate but steady” pace of growth can be maintained in the 19-nation region despite political uncertainty and slowing global trade, with policy makers pondering whether and how to expand quantitative-easing program. In Tuesday’s report, the Ifo institute said its business climate index climbed to 110.5 from 109.5 in September. That’s the highest level since April 2014 and compares with a median estimate in a Bloomberg survey of economists of 109.6. An index for economic expectations rose to 106.1 form 104.5, while the evaluation of the current situation also improved to 115 from 114.7.

On Thursday M3 Money Supplyfigures were published. The annual growth rate of the broad monetary aggregate M3 stood at 5.0% in September 2016, after 5.1% in August, averaging 5.0% in the three months up to September. The components of M3 showed the following developments. The annual growth rate of the narrower aggregate, including currency in circulation and overnight deposits (M1), decreased to 8.5% in September, from 8.9% in August.

From Eurozone, on Friday, German CPI data was published. The inflation rate in Germany as measured by the consumer price index is expected to be +0.8% in October 2016. Based on the results available so far, the Federal Statistical Office (Destatis) also reports that the consumer prices are expected to increase by 0.2% on September 2016. The harmonised index of consumer prices for Germany calculated for European purposes is expected to be up 0.7% year on year. Compared with September 2016, it is expected to be up by 0.2%.

This week markets will be looking at:

CPI Flash Estimate (Monday 12:00)

GDP (Monday 12:00)

German Unemployment Change (Wednesday 10:55)

Spanish Unemployment Change (Thursday 10:00)