Yorker News - "Finally, stabilisation," said Carsten Brzeski, analyst at ING. "In our view, the Ifo index is currently the best single leading indicator for the German economy. Therefore, today's Ifo reading gives clear comfort for our view of an accelerating economy in the final quarter of the year."

Frankfurt's Xetra Dax 30 is 0.7 per cent higher after the data, having shown modest opening losses. The International FTSE Eurofirst 300 is up 0.3 per cent, with the CAC 40 in Paris up 1 per cent. London's FTSE 100 is missing out on the trend, ticking 0.1 per cent lower with its heavily weighted energy stocks holding it back.

The euro is up 0.2 per cent to $1.2411, while the pound is also 0.1 per cent higher at $1.5666. The dollar is generally a little weaker after its recent strong run higher. The dollar index, which tracks the US currency against a range of its peers, is down 0.1 per cent at 88.224.

European sovereign borrowing costs are steady, with 10-year Bunds flat at 0.77 per cent and France's equivalent debt yielding 1.11 per cent.

Brent crude is up 0.2 per cent at $80.48 per barrel, while gold is down 0.5 per cent at $1,196.35 a troy ounce.

It was a more bullish session in Asia, as traders react to the People's Bank of China's first benchmark rate cut in two years, made on Friday.

The Hang Seng index in Hong Kong climbed 1.9 per cent, while the Shanghai Composite also rose 1.9 per cent.

Sydney's S&P/ASX 200 was up 1.1 per cent, as was South Korea's Kospi Composite. Markets in Japan were closed for a holiday.