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New York markets rebound as Fed leaves rate unchanged; TSX drifts lower

TORONTO - The Toronto stock market closed in the red as commodity prices drifted lower, while New York markets turned higher after the U.S. Federal Reserve announced it was keeping its benchmark interest rate unchanged.The S&P/TSX composite index closed down 20.07 points at 14,732.98, while the loonie was up 0.51 of a U.S. cent at 81.73 cents.Meanwhile, American markets rebounded from an earlier slump after the Fed said that while the U.S. economy has strengthened since a slump earlier this year it wants to see further gains in the job market and higher inflation before raising interest rates from record lows.The Fed gave no timetable for a rate hike but said it expects the economy's gains to accelerate later this year. Many analysts say that if the economy keeps improving, it Fed will likely raise its key short-term rate in September. That rate has been held near zero since 2008.The Dow Jones industrial average closed up 31.26 points at 17,935.74, while the Nasdaq added 9.33 points to 5,064.88 and the S&P 500 was 4.15 points higher at 2,100.44On commodity markets, the July crude contract gave back five cents to US$59.92 a barrel, while the August gold contract fell $4.10 to US$1,176.80 an ounce.

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