Germany's economic engine looks set to sputter through early 2026, according to fresh Bundesbank forecasts. The eurozone's largest economy is expected to maintain its sluggish trajectory rather than shift into higher gear anytime soon.

This outlook carries implications for risk assets across the board. When major developed economies show signs of stagnation, capital flows tend to shift, affecting everything from equities to alternative assets. Traders keeping tabs on macro headwinds should pay attention to how European monetary policy evolves in response to this slowdown.