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Wednesday, September 19, 2007

The Fed's Rate cut has (so far) proved bearish for the US dollar and bullish for commodities. Here is some news you can use ...

Australian and New Zealand Dollars Strengthen on U.S. Interest Rate Cut The New Zealand dollar surged by the most in almost nine years and Australia's currency advanced the most in a month after the U.S. cut its key interest rate by a half point, boosting the appeal of higher-yielding assets.

Japan's Bonds Fall Most in 8 Months; BOJ Reiterates Need for Higher Rates Japan's 10-year bonds fell the most in eight months after the central bank governor reiterated the need to raise interest rates and one of his fellow policy makers opposed today's decision to keep borrowing costs unchanged.

Oil Trades Above $82 After U.S. Rate Cut Stokes Outlook for Fuel Demand Crude oil traded above $82 a barrel in New York for a second day on speculation a cut in U.S. interest rates will revive the economy and strengthen demand for energy.

Hong Kong's Hang Seng Index Surges; Closes Above 25,000 for First Time Hong Kong's Hang Seng Index surged to its first close above 25,000, with the value of shares traded reaching an all-time-high.

India's Benchmark Sensex Tops 16,000 for First Time After Fed Cuts Rates India's Sensitive Index exceeded 16,000 for the first time after the U.S. Federal Reserve cut its benchmark interest rate more than expected, easing concern a housing slump will drive the world's largest economy into recession. Reliance Industries Ltd. led advancers.

Gold May Decline in London as Jeweler Purchases Stall; Silver Advances Gold may decline in London on speculation jewelers, the biggest buyers, will hold off purchases until prices retreat from recent highs. Silver rose.

Nickel, Copper Gain in London on Expectations Rate Cut Will Bolster Demand Nickel, copper and zinc rose in London after the U.S. Federal Reserve lowered interest rates to prevent an economic slowdown. Aluminum, lead and tin also gained.

Uranium Will Trade at $85 to $100 a Pound in Short Term, RBC Dominion Says Uranium prices will range between $85 and $100 a pound ``in the coming weeks,'' with ``increasing activity'' at the end of this month and into October, RBC Dominion Securities Inc. said in a report yesterday.

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