Euro-area government bond yields rose in early trading, with Germany's 10-year Bund yield climbing to 3.276%, its highest level in 15 years. Commerzbank attributed the increase to higher oil prices, rising euro-area inflation and the European Central Bank's hawkish stance.
European Central Bank Executive Board member Isabel Schnabel said the ECB needs to raise interest rates further, arguing that inflation risks in the euro area remain tilted to the upside. She pointed to the prolonged conflict in the Middle East and unexpectedly strong economic performance across the euro zone as key factors keeping price pressures elevated. According to her remarks, consumer price growth could stay above the ECB’s 2% target for "a longer period," and waiting until those pressures feed through to wages would leave policymakers behind the curve. Schnabel said current interest rate levels are unlikely to bring inflation back to target over the medium term, making additional tightening necessary. She also cited fiscal policy, higher defense spending, and the global artificial intelligence boom as major drivers behind the economy’s resilience. In addition, she warned that energy price pressure beyond oil is becoming more persistent, with the natural gas market a particular concern given low storage levels in Europe.
A European Central Bank survey of 8,205 companies across the euro area found that crypto adoption in day-to-day business payments remains extremely limited. Only 0.2% of surveyed firms said they accept cryptocurrencies or stablecoins for online payments, while the acceptance rate at physical points of sale stood at 1%. The survey also showed that traditional payment methods still dominate among businesses with physical sales locations. Cash was accepted by 92% of those firms, and 88% accepted card payments. At the same time, mobile payment acceptance rose sharply, increasing from 36% in 2024 to 68% in 2026. The figures were cited by Odaily, which referenced Bitcoin.com News as the source.
JPMorgan strategists, led by Mislav Matejka, remain optimistic on global equities and expect the market advance to broaden in the second half of the year. In a research note, the team said cyclical stocks are positioned to take back the lead as corporate earnings and economic activity indicators improve. The strategists predict that major indices will reach new highs in the second half, while stressing that current positioning is far from extreme. They also described the second-quarter earnings season as reassuring. In the cyclical space, the team is paying particular attention to banks, luxury goods, building materials, mining, industrials and cyclical consumer sectors. At the regional level, the report favors emerging markets and the euro area. The overall stance implies a preference for economically sensitive exposures rather than defensive low-volatility stocks. The key messages center on broad-based gains, cyclical leadership, fresh index highs, and the absence of excessive positioning. BlockBeats relayed the call on August 10.
According to Jin10, the day’s main macro events span energy data, services activity readings and remarks from U.S. Federal Reserve officials. The schedule starts with the U.S. weekly API crude oil inventories for the week ended July 31 at 04:30, followed by remarks from Federal Reserve Chair Schmid at 08:15. China’s July RatingDog services PMI is due at 09:45. Europe then takes focus with France’s June industrial output month-on-month reading at 14:45, France’s final July services PMI at 15:50, Germany’s final July services PMI at 15:55, the euro zone’s final July services PMI at 16:00, the U.K.’s final July services PMI at 16:30, and the euro zone’s June PPI month-on-month reading at 17:00. In the U.S. session, traders will watch July ADP employment at 20:15, the final July S&P Global services PMI at 21:45, July ISM non-manufacturing PMI at 22:00, and three EIA oil stock readings at 22:30, covering crude, Cushing crude and strategic petroleum reserves. Fed Governor Cook is also scheduled to speak on the economic outlook at 04:05 the next day.
European Central Bank Executive Board member Piero Cipollone warned on July 17 in Rome that broader stablecoin adoption could drain retail deposits from the banking system. Speaking in a presentation titled "The cooperative spirit at the heart of the digital euro," he said banks would lose retail funding if stablecoin use keeps growing. Cipollone tied that risk to bank funding stability, arguing that if stablecoins become a mainstream tool for payments and stored value, money now held in bank deposits could shift into on-chain wallets, weakening banks’ lending base. He also pointed to structural weaknesses in the euro area’s payments setup. According to the figures he cited, about two-thirds of euro area card payments run through non-European payment channels, and 13 of the bloc’s 21 countries do not have a national card scheme. His remarks came as the European Union’s stablecoin bill entered negotiations on July 9 between member states and the European Commission, with a target of reaching an agreement by the end of 2026. The first issuance of the digital euro is expected in 2029, and 36 payment service providers are currently involved in the pilot.
European Central Bank Executive Board member Piero Cipollone said large-scale stablecoin adoption could weaken the retail deposit base of commercial banks and reshape competition in the traditional banking system. Speaking Friday in Rome at the Federation of Italian Cooperative Banks, Cipollone said digital payments are changing banking while also increasing Europe’s reliance on non-European payment infrastructure. He said banks are already dealing with lower fee income from payments and the loss of transaction data as mobile payment providers expand. Cipollone argued that broader use of stablecoins and other digital asset payment tools could add to deposit outflow pressure for banks. He said a digital euro would help preserve the role of public money, keep banks involved in the payments ecosystem, and meet changing customer needs. Earlier this week, the ECB selected 36 payment service providers for a 12-month digital euro pilot involving banks, fintech firms, and payment companies. The pilot is scheduled to begin in the second half of 2027, and the ECB has previously said the digital euro could be officially launched as early as 2029 if legislation and testing progress as planned.
