ECB rate decision and weak US banks weigh on European shares

The ECB raised rates by 25 basis points and signaled that the "journey" is continuing. Some members wanted a 50 basis point Basis point A basis point is a unit of measurement used to express the change in value of a financial instrument, such as a bond or a loan. One basis point is equal to 0.01%, or one one-hundredth of a percentage point. For example, if the interest rate on a bond increases from 5% to 5.25%, that is an increase of 25 basis points. It is often used in the context of interest rates, yield, and credit spreads. The short-hand for a basis point is bps and on a trading floor you will hear them referred to as ' A basis point is a unit of measurement used to express the change in value of a financial instrument, such as a bond or a loan. One basis point is equal to 0.01%, or one one-hundredth of a percentage point. For example, if the interest rate on a bond increases from 5% to 5.25%, that is an increase of 25 basis points. It is often used in the context of interest rates, yield, and credit spreads. The short-hand for a basis point is bps and on a trading floor you will hear them referred to as ' Read this Term hike. Sources said some members see 2– 3 more hikes ahead.

US regional bank index is also keeping investors on alert and adding to a bearish tone toward stocks and growth.

The final numbers for the day are showing:

• German DAX -80.80 points or -0.51%
• Frances CAC -63.06 points or -0.85%
• UK's FTSE 100 -85.73 points or -1.10%
• Spain's Ibex -33.10 points or -0.36%
• Italy's FTSE MIB -165.02 points or -0.61%

Looking at France's CAC, the price has moved below the 100 and 200 hour moving averages this week, after reaching a new all time high on April 24 at 7581.28. The price has moved down by -3.49% from that high. The next target comes in at 7281.37. That is the 38.2% of the move up from the March 20 low.