The ECB warns of potential financial instability due to an abrupt bond market repricing, fueled by high government spending needs and hedge fund exposure. Lingering geopolitical tensions and US debt worries could amplify these risks, impacting euro zone growth and fiscal sustainability.

ECB survey reveals euro area firms expect 3.5% price hikes as US-Iran war drives inflation to 2.6% for 2026. GDP growth cut to 0.9%. What it means for investors.

ECB's SAFE survey shows euro area firms expect 3.5% selling price hikes after the US-Iran war, with one-year inflation expectations jumping to 3.0%.