The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.

0513 GMT - Eurozone government bond markets will focus on flash estimate PMI data for September on Wednesday, with risks to the downside, analysts at Daiwa Capital Markets say in a note. "Overall, we see the risks to the flash activity indices skewed slightly to the downside," they say. Recent drivers--concentrated amongst German manufacturers and Southern European services--could be difficult to sustain and the rise in global energy prices over the summer seems bound to reassert pressure on firms' input prices and potentially selling prices too, they say. "However, those risks are unlikely to detract from the wider picture of improving underlying growth momentum." (emese.bartha@wsj.com)

0500 GMT - Fitch Ratings expects the oil market to return to a substantial surplus in 2027. While it expects oil prices to fall next year, Fitch has raised its 2027 forecast for oil to US$70 a barrel from $65 a barrel to reflect the longer-than-anticipated Middle East conflict and the implications for the geopolitical risk premium. Analysts Brian Coulton and Alex Muscatelli acknowledge a high level of uncertainty around these projections. Assuming a deal between the U.S. and Iran takes shape in 1Q of 2027, supply and demand fundamentals could play a bigger role in determining oil prices. On the upside, geopolitical uncertainties could result in oil prices averaging $85 a barrel next year, while on the downside, a rapid recovery in supply could see prices fall to $55 a barrel, they say in a report.