Trader's Highlight

DJI-NEW YORK, Jan 12 (Reuters) - U.S. stocks fell on Monday as concerns about massive credit losses at Citigroup knocked its shares 17 percent lower, dragging down bank stocks, and on fears of a dismal fourth-quarter earnings season.

A Wall Street Journal report that Citigroup could report more than $10 billion in fourth-quarter operating losses struck a blow to other banks on fears of a fresh round of losses from the credit crisis.

The Dow Jones industrial average <.DJI> fell 125.21 points, or 1.46 percent, to 8,473.97. The Standard & Poor's 500 Index <.SPX> dropped 20.09 points, or 2.26 percent, to 870.26. The Nasdaq Composite Index <.IXIC> lost 32.80 points, or 2.09
percent, to 1,538.79.

Investors fear that Citigroup is looking to sell one of its best assets because it needs cash. Adding to concerns on Citigroup was news that the embattled U.S. bank is nearing a deal to sell a controlling stake in its Smith Barney retail brokerage business to Morgan Stanley

In response to the faltering economy, President-elect Barack Obama asked President George W. Bush to seek from Congress the remaining $350 billion of the $700 billion
financial industry bailout, and he agreed to do so, the White House said.

NYMEX-NEW YORK, Jan 12 (Reuters) - U.S. crude oil futures ended down nearly 8 percent on Monday on demand concerns, in a follow-through of Friday's sharp losses spurred by a gloomy jobs report.

On the New York Mercantile Exchange, February crude settled down $3.24, or 7.94 percent, at $37.59 per barrel, after trading from $37.48 to $40.80.

CBOT-SOYBEANS - January down 83-1/2 cents at $9.54 a bushel, March off 70 cents at $9.66.

Collapsed on USDA's bigger-than-expected U.S. soy stocks data. January in delivery and trading without limits. Falling crude weighs.

USDA reported Dec. 1 soy stocks at 2.276 billion bushels, above average trade estimate of 2.182 billion.

Bigger number reflected a larger 2008 U.S. soy crop of 2.959 billion bushels, above the average of trade estimate for 2.913 billion and USDA November forecast for 2.921 billion.

USDA revised upward its 2008/09 U.S. soy ending stocks figure by 20 million bushels to 225 million.

CBOT-SOYOIL - January down 2.32 cents at 34.18 cents a lb, March off 2.31 at 34.41 cents. Following soybeans and crude oil lower.

USDA raised 2008/09 U.S. soyoil end stocks forecast by 110 million lbs to 2.143 billion despite decreased production.

FCPO-JAKARTA, Jan 12 (Reuters) - Malaysian palm futures rose 3.5 percent on Monday after the industry regulator announced a drop in end-December palm oil stocks from a record high the month before, traders said.

The rally was also underpinned by news that Malaysian palm oil exports for the first 10 days of January came within market expectations, although shipments fell from the same period in December.

The benchmark March palm oil contract on the Bursa Malaysia's Derivatives Exchange rose 68 ringgit, or 3.5 percent, to 1,988 ringgit ($5570) per tonne.

Other traded contracts rose between 60 ringgit and 86 ringgit. Overall volume was 9,469 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, Jan 12 (Reuters) - Singapore shares fell to a one-week low on Monday amid worries about DBS Group's exposure to a defaulting Kuwaiti lender, and most other Southeast Asian markets dropped on fears of a deepening U.S. recession.

Singapore's index <.FTSTI> fell for a fifth day, down 1.7 percent to its lowest since Jan. 2, with bank DBS Group sliding 3.7 percent on speculation about its exposure to Global Investment House , even though DBS denied any exposure.

Malaysia bucked the trend and its index <.KLSE> ended up 0.5 percent, adding to a 0.94 percent rise on Friday, with outperformers including Telekom Malaysia , up 4.6 percent, and fourth-largest lender RHB Capital , up 1.95
percent.