S&P: More rate hikes and 'sticky inflation' to weigh on growth

Shares in Deutsche Bank, the European banking giant, closed almost 5% higher in Frankfurt trade, amid a relief rally. It became the latest global bank last week to face questions about its financial health.  

Rate hikes and "sticky inflation" will continue to hinder the eurozone economy getting back to growth this year, ratings firm S&P Global has predicted, warning that a mild recession could still be on the cards. 

In its latest assessment, the ratings firm said it expects the European Central Bank to continue to increase interest rates this summer, unless the banking turmoil of the past two weeks were to continue.