Big ECB hike sends euro zone banks to two-month lows

The European Central Bank raised interest rates by 50 basis points, even though some investors had thought the current turmoil in financial markets would have deterred it from delivering another hefty rate hike. This sent the euro zone bank shares lower, with the index of euro zone banks falling by as much as 1.2% to its lowest since January 2. The euro’s reaction to the decision was fairly muted, and was last trading 0.1% higher on the day at $1.0591.