FOMC Minutes Hint At End Of Stimulus

Asian markets traded mixed on Thursday, despite upbeat economic data from China. The ASX 200 advanced .7% to 4741, lifted by miners, extending Wednesday’s 1.2% gain. The Hang Seng edged up .4% to 23398, while the Kospi declined .6%, as automakers skidded. Markets in Japan and China were closed.

In Europe, the leading indexes ended mixed after Wednesday’s sharp gains. The DAX and CAC40 40 both eased .3%, while the FTSE managed a gain of .3% to 6047. Switzerland’s SMI Index which was closed on Wednesday, jumped 2.9%, as shares caught up to the region’s gains from the previous session.

US stocks pulled back modestly from Wednesday’s sharp gains. The Dow slipped 21 points to 13391, the S&P 500 declined .2% to 1459, and the Nasdaq retreated .4% to 3101. The Fed released the minutes from the most recent FOMC meeting, indicating that there was debate over how long the Fed’s bond purchase program, better known as QE3, should continue.

Transocean rallied 6.4% after reaching a $1.4 billion settlement agreement with the government regarding the BP spill of 2010.

Limited Brands, parent of Victoria’s Secret, sank 5.7% after same-store sales growth fell short of forecasts. Meanwhile, Gap advanced 2.3% after announcing sales growth of 5%, stronger than expected.

Currencies
The Dollar rallied against European currencies, as the Euro tanked 1.1% to 1.3046, and the Pound slumped .9% to 1.6100. The Australian Dollar dropped .4% to 1.0465, while the Yen edged up fractionally to 87.28.

EUR/USD" title="EUR/USD" width="524" height="301">
Economic Outlook
The ADP payroll report was surprisingly strong, showing job growth of 215K last month. In contrast, weekly unemployment claims unexpectedly increased to 372K from 362K.

Friday’s focal point will be the official non-farm payroll report, which is expected to show a gain of 150K. Also due are the unemployment rate, factory orders, ISM non-manufacturing PMI, and crude oil inventories.