Capital concerns: The European Central Bank is expected to stand pat this year, shifting interest rate cut risks to next year.

Kathleen MacNeil, Deputy Chief Economist of Capital Economics Eurozone, said, "The European Central Bank decided today to keep its deposit rate unchanged at 2.0% and did not provide any guidance on future rate decisions, which was in line with expectations. The central bank is unlikely to adjust rates again this year, but we believe the risks are tilted towards another rate cut in 2026."