Euro zone limping as global trade war escalates

More evidence that euro zone growth has slowed this year is likely to be seen on Thursday, when surveys are expected to show an escalating global trade war is hurting producers.

The currency bloc was a surprise economic star last year, outpacing its peers, but the rate of expansion is steadily slowing and a succession of Reuters polls have said it has already peaked. Protectionist policies on trade are likely to tap the brakes significantly on global growth and have already caused turmoil in financial markets.

Manufacturers have been spooked by the escalating trade war between the USA and its trading partners although reports China is to send a delegation to Washington for discussions may allay some of those fears.

A reading above 50 indicates expansion, and if the 54.3 forecast in a Reuters poll for a composite PMI is realised it will confirm growth remains robust but is far weaker than the decade-high pace witnessed earlier this year.