Euro area PMIs to moderate ahead of likely further ECB action

The euro area flash composite PMI (Wednesday) is expected to moderate slightly in September to 54.1 (consensus: 54.0; last: 54.2), as the manufacturing and services sectors post slight declines to 52.0 (consensus: 52.0) and 54.2 (consensus: 54.2), respectively. The German IFO business climate index (Thursday) is also likely to moderate in September to 107.9 from 108.3.

"We continue to see increased downside risks to euro area growth and inflation stemming from a slowing China and expect additional ECB easing to act as a catalyst for a renewed push lower in the EUR", notes Barclays.