EU's Dombrovskis said the bloc will still be hit by a “stagflationary shock” of low growth and rising inflation despite the US-Iran ceasefire, while European Commission is preparing to cut growth forecasts, according to FT

The comments from EU's Dombrovskis highlight concerns about a stagflationary environment, indicating a combination of low growth and high inflation that could persist despite geopolitical easing, like the US-Iran ceasefire. This sentiment is compounded by the upcoming revision of growth forecasts from the European Commission, which suggests that market participants should brace for potentially negative economic signals that could influence monetary policy and risk sentiment in Europe.