The German ZEW indicator extended its impressive rebound in February. After posting a record increase in January, the German ZEW index jumped again more than 25 points, blowing away all market expectations. The German ZEW economic sentiment indicator jumped from -21.6 to 5.4, while the consensus was looking for a more moderate increase to -11.8. Not only the expectations index improved in February, but this time also the current situation sub-index joined the impressive jump (40.3 from 28.4), providing further evidence that economic conditions are improving. The ZEW rose for a third consecutive month in February, confirming that the downward trend has turned in a positive direction. Today’s GDP data will probably show that the German (and euro zone) economy contracted at the end of last year, but survey data suggest that the contraction is unlikely to last long, although a technical recession is not excluded.