Monday, September 22, 2008

Trader's Highlight

DJI-NEW YORK, Sept 21 (Reuters) - Uncertainty about the workings of the government's $700 billion bank bailout drove U.S. stock index futures and bond futures lower Sunday evening as Asian markets got ready to start the week.

The dollar weakened against the yen on concerns that government borrowing will exacerbate the U.S. budget deficit as it needs to issue more debt to finance its rescue plan to buy bad mortgages from financial institutions.

Negotiations between Congress and U.S. Treasury Secretary Paulson ratcheted up over the weekend after the administration and U.S. congressional leaders began swapping proposals.

On Friday the Dow Jones industrial average <.DJI> closed up 368.75 points, or 3.35 percent, at 11,388.44. The Standard & Poor's 500 Index <.SPX> advanced 48.57 points, or 4.03 percent, to 1,255.08. The Nasdaq Composite Index <.IXIC> shot up 74.80 points, or 3.40 percent, to 2,273.90.

NYMEX-NEW YORK, Sept 19 (Reuters) - U.S. crude oil futures ended more than 6 percent higher on Friday, rising for the third day in a row, on hopes that a comprehensive U.S. government plan can help stabilize battered financial markets.

On the New York Mercantile Exchange, October crude settled up $6.67, or 6.81 percent, at $104.55 per barrel, trading from $97.39 to $105.25.

CBOT-SOYBEANS - November up 27-1/2 cents at $11.43-1/2 per bushel, January up 29-1/2 at $11.59-1/4.

Rallying on rebound in stock market after U.S. government bailout of financial sector. Soy market seen as oversold and due for a bounce. Improved U.S. crop weather hangs over market.

SOYOIL
- October up 2.48 cents at 46.92 cents per lb.Following soybeans and crude oil higher.

FCPO-KUALA LUMPUR, Sept 19 (Reuters) - Malaysian crude palm oil futures jumped 3.6 percent on Friday as crude oil prices went through the key $100-a-barrel level, traders said.

The benchmark December contract rose as much as 78 ringgit to 2,263 ringgit ($654) before settling at 2,259 ringgit.

REGIONAL EQUITIES-SINGAPORE, Sept 19 (Reuters) - Southeast Asian stocks leapt on Friday as investors turned positive on hopes of a long-term cure for global market turmoil, with financials such as Singapore's DBS and Bangkok Bank driving gains.

Indonesia <.JKSE> jumped 5.8 percent to its highest in a week. Malaysia <.KLSE> gained 3.4 percent but failed to recoup the week's losses, giving up about 2 percent this week. The Philippine index <.PSI> and Vietnam <.VNI> both swelled 4.7 percent, though Vietnam is still down over 52 percent since the year started.