Wall Street has edged higher in early trading, but after Friday's drop of more than 3% it is hardly an impressive performance.
The Dow Jones Industrial Average has climbed around 25 points, and the FTSE 100 has come off its worst levels and is now down 41 points at 5085, having touched 5040. Investors are still nervous about the European sovereign debt crisis, with Hungary the latest in the frame after its recent comments it could face a Greek-style problem. There are also fears about the global economic recovery, in the wake of Friday's poor US job figures and worries that the European austerity packages will hamper any potential growth.
But EU ministers are making positive noises about approval for a €440bn bailout package, while new order figures from Germany came in better than expected. Carsten Brzeski at ING Bank said:
German new orders continued their rally, increasing by 2.8% month on month in April. Compared with one year ago, new orders are up by almost 30%. Both foreign and domestic demand increased.
With today's numbers, the outlook for the German industry has brightened further. While confidence indicators in some Eurozone countries dropped as a result of the sovereign debt crisis, German manufacturers remain optimistic.
