Christian Schulz

Germany's trading activity got off to a strong start this year with both exports and imports rising in January, official data showed on Monday.

Following an unexpected drop in factory orders, news that German industrial output stagnated in January dealt another blow to hopes for a strong recovery in Europe's biggest economy, analysts said Friday.

The European Central Bank Thursday held its main refinancing rate at a historic low of 0.75 percent, playing down concerns that political gridlock in Italy could trigger a resurgence in the debt crisis.

Investor sentiment in Germany has risen to levels last seen before the start of the three-year-old debt crisis, adding to signs that Europe's top economy is over the worst, a poll found on Tuesday.

German industrial output rose for the first time for five months in December, data showed on Thursday, adding to evidence that sharply rising confidence is gradually feeding through into the real economy, analysts said..

French President Francois Hollande said on Tuesday that the value of the euro cannot be left to market forces, adding his voice to concerns over the recent sharp rise in the currency.

Retail sales in Germany fell unexpectedly in December, as consumer spending took a hit from the eurozone's debt crisis, official data showed on Thursday.

Demand for credit in the 17-country eurozone remains weak, even though tensions seem to be easing in the region's financial markets, data published by the European Central bank showed on Monday.

Germany, Europe's top economy, appears to have put the worst of the region's debt crisis behind it, data showed Friday, with business confidence rising to its highest level in seven months.

Investor sentiment in Germany has soared to the highest levels since the start of the eurozone debt crisis in 2010 as the outlook for Europe's top economy continues to brighten, a survey found on Tuesday.

Italy reported strong trade surplus data for November on Wednesday and said the figures for 2012 as a whole could be the strongest for 10 years an encouraging sign for the the eurozone's third-biggest economy.

Germany turned in its weakest growth in four years in 2012, data showed on Tuesday, and the government halved its forecast for 2013 as Europe's top economy is increasingly hit by the debt crisis.

The European Central Bank held its key interest rates steady Thursday and looked set to keep them there for some time to come amid signs the eurozone debt crisis is stabilising, analysts said.

The European Central Bank will hold fire on interest rates at its last policy meeting of 2012 Thursday, even if its updated forecasts will suggest the eurozone's recession is deepening, analysts said.

Bayern Munich were unable to break champions Borussia Dortmund's stranglehold in a 1-1 draw on Saturday as their lead at the top of the Bundesliga was trimmed back to eight points.

Second-placed Bayer Leverkusen did just enough to beat Nuremberg 1-0 on Saturday and apply pressure on Bundesliga leaders Bayern Munich ahead of their showdown against Borussia Dortmund.

A deal struck Tuesday to cut back Greek debt to creditor countries and the IMF paves the way for easier cashflow management in Athens, but analysts warn the paths identified simply buy time.

The eurozone and IMF threw a new lifeline to Greece on Tuesday, releasing funds to avert bankruptcy and admitting that help to reduce debt will be needed for years, leading the Greek prime minister to herald a new dawn for his country.

The European Central Bank held fire on both interest rates and other policy measures at its regular meeting in Frankfurt Thursday, insisting the onus is now on governments to get the eurozone's finances on a sustainable footing.

The European Central Bank is unlikely to fire the new anti-crisis "bazooka" it unveiled two months ago, and will keep its gunpowder dry on interest rates as well at its meeting on Thursday, analysts say.