Asian markets closed mixed, as the region took a break from the recent rally. Weak Chinese economic data contributed to the declines, as PMI data dropped to an 8 month low. Ironically, markets in greater China fared best, as the Shanghai Composite and Hang Seng both climbed .9%. The Nikkei fell .6% to 8642, the Kospi eased .1% to 1880, and the ASX 200 edged down .2% to 4263.
European markets traded mixed as well, as the market awaited the Fed’s statement. The FTSE rallied 1.4% to 5713, the CAC40 gained .9% to 3323, while the DAX slipped .3% to 6754.
US stocks ended lower after the Fed disappointed the market, and failed to announce any new stimulus measures. The Dow declined 33 points to 12976, the Nasdaq skidded .7% to 2920, and the S&P 500 dipped .3% to 1375.
Knight Capital Group, a market-maker for NYSE stocks, tumbled 33% after problems in its order routing system caused wild volatility in approximately 150 stocks.
Energizer tumbled 12.1% after earnings fell short of forecasts.
Treasuries and Commodities
10-year notes fell 14/32 to yield 1.52%, and 30-year notes sank 1 full point, to yield 2.59%.
Crude oil gained .8% to 88.80, as weekly oil inventories fell by 6.5 million barrels, 5 million more than forecast. Gasoline jumped 1.9% to 2.8265, while natural gas skidded 1.5% to 3.162.
Metals sold off, as silver tumbled 1.9% to 27.275, and copper fell 1.7% to 3.361. Gold fared better, shedding .6% to 1600.50.
Following the Fed’s statement, the Dollar climbed against its peers. The Pound slumped .9% to 1.5536, while the Euro and Swiss Franc dropped .6%. The Yen lost .4% to 78.45, and the Australian Dollar declined .3% to 1.0458.
Wednesday’s ADP employment report showed a gain of 163K jobs, 42K more than forecast, but weaker than last month’s 172K reading. The report is seen as a strong indicator for Friday’s official non-farm payroll report.
Construction spending and ISM manufacturing PMI both rose less than forecast.
Thursday’s focus will be the rate decisions by the Bank of England and the ECB. Also due from the US are weekly unemployment claims, chain-store sales, and factory orders.
Earnings are scheduled for AIG, Clorox, GM, Kraft, LinkedIn, and Sony.