Carsten Brzeski of ING, notes that Germany has started the final quarter of the year on a positive footing, with the ZEW headline number recording the strongest monthly increase since January 2013. Party or hangover? This morning’s confidence indicators sent again mixed signals on the state of the Eurozone’s biggest economy. On the positive side, the ZEW index just suggested a new party atmosphere amongst investors with the headline number staging the strongest monthly increase since January 2013. Over the last two months, the ZEW index has increased from a depressive -3.6 in October to 34.9 in December. The stronger ZEW reading is probably the logical result of lower energy prices and the belief in the healing power of the ECB current measures and, of course, upcoming QE, understanding the PMI remains a mystery. The German economy has started the final quarter of the year on a positive footing. Moreover, the economy should benefit from a very special stimulus package: the weaker euro and the sharp drop in energy prices. “To some extent, however, this very special stimulus package could also be the poisoned apple as it could delay necessary structural reforms.”