ECB Hikes 50 Basis Points

The European Central Bank was expected to raise by 50 basis points and the recent credit issues did not impact their decision.

PRE-OPEN MARKET COMMENTS THURSDAY – All eyes are on credit these days. Credit Suisse is likely to get aid from the central bank. It is important to know that Switzerland is not part of the ECB. If European banks issues start to surface, the bailouts and backstops are much different. The decision making is much more fragmented and the process takes much longer. That is a problem since credit issues escalate rapidly. The market will be focused on any new signs of trouble and the FOMC statement next week.  The ECB hiked 50 points this morning. They are behind on the tightening curve and they are playing catch up. The credit news did not impact their decision.

Daily Bulletin Continues...