GERMANY'S manufacturing sector might have been hit by the global recession but that didn't stop Western Europe's largest economy posting a modest expansion in the second quarter. However, analysts remain wary of calling an end to the recession and warn that there could be a pullback in the autumn. There are now signs that the German blue-chip <strong>Dax 30</strong> could be on the verge of tipping lower. Last week, the index passed a key resistance level of 5,500 and the Dax is easily influenced by moves in just a few key stocks. ShortsandLongs.com has a December spread of 5,443-5,449.<br /><br />But Germany's improvement could boost the euro, especially against the pound, which has suffered from the UK lagging behind France and Germany. The euro gained 3.5 per cent against sterling in August and with German surveys pointing to further good news in the Eurozone, sterling may continue to seem less attractive. Capital Spreads quotes a <strong>sterling-euro</strong> price of €1.1350-€1.1354.<br /><br />There are still opportunities to pick up cheap stocks despite the summer rally. Troubled Irish airline <strong>Aer Lingus</strong> painted a bleak picture last week after revealing that losses have quadrupled in the first half of the year from €23.4m to €93m. But optimistic spread betters have been buying on the view that a share price of around the 50 cent level offers a small downside compared to possible gains should things pick up for the firm amid talk of a possible takeover by Ryanair. Spreadex has a December spread of 49.9c-52.5c.<br /><br />Those looking for a short-term buy could look at mining company <strong>Kazakhmys</strong>, which will do well from the soaring copper price. However, the management team seemed bearish in their conference call with analysts. Look to buy Kazakmhys on any weakness towards and below the 20-day moving average level of 828p. IG Index is quoting a December spread of 987.5p-995.4p.