Figures should show Europe is recovering

Economic figures published next week are expected to show Europe's major economies are on the road to recovery.

Inflation is expected to be stable and money supply growth easing.

Economists will focus on Tuesday's Ifo index in Germany, which should confirm the country is shaking off the effects of the US terror attacks.

Bank of America economist Lorenzo Codogno says Germany's fortunes should begin to pick up in the second quarter.

Other surveys and official data from around the euro zone, including France, should provide further evidence that the economy is picking up steadily.

Another important piece of data will be the euro zone money supply growth figures, which should ease some worries at the European Central Bank. The ECB has its next rate-setting meeting on April 4.