ECB Sticks with 50 bps

Futures are off modestly following stronger than expected economic data and a 50 bps ECB rate hike.The 50 bps hike surprised many, given the increased focus on banking instability. We can bet the Fed will be watching markets closely this morning, as it faces a similar decision next week: stick to its inflation fighting (a rate hike) or acknowledge that the banking system needs more support (a pause.)