Trader's Highlight

DJI-NEW YORK, Feb 2 (Reuters) - The Dow Jones and S&P 500 indexes ended lower on Monday as uncertainty about the Obama administration's plan to stem bank losses hit financial shares and a bleak outlook by Macy's fueled worries the U.S.
recession is worsening.

The Dow Jones industrial average <.DJI> shed 64.11 points, or 0.80 percent, to end at 7,936.75 -- its lowest closing level so far in 2009. The Standard & Poor's 500 Index <.SPX> dipped 0.45 point, or 0.05 percent, to 825.43. The Nasdaq Composite Index <.IXIC> gained 18.01 points, or 1.22 percent, to 1,494.43.

NYMEX-NEW YORK, Feb 2 (Reuters) - U.S. crude oil futures almost 4 percent lower on Monday as economic weakness and an extension of talks easing the immediate threat of a strike by U.S. refinery workers pressured the oil futures complex.

On the New York Mercantile Exchange, March crude settled down $1.60, or 3.84 percent, at $40.08 per barrel, after trading from $39.83 to $42.31.

CBOT-SOYBEANS - March down 20-1/2 cents at $9.59-1/2 a bushel.

Light showers over the weekend in Argentina and forecasts for more rain this week weigh on soy along with falling stock markets, weak crude oil and a firm dollar.

Late short covering moved prices above the day's lows by the close.

Talk China was buying soy after returning from Lunar New Year also helped keep soybeans from falling further.

CBOT-SOYOIL - March down 0.97 cent at 31.76 cents a pound. Following soybeans lower. Weakness in crude oil also weighing on prices.

FCPO-KUALA LUMPUR, Jan 30 (Reuters) - Malaysian crude palm futures rose nearly 2 percent on Friday as more investors streamed back into the market, heartened by concerns of sharp falls in domestic production this month, traders said.

The benchmark April contract closed up 34 ringgit at 1,779 ringgit ($493.3) as traders were also taking positions ahead of a long holiday weekend. The Malaysian palm oil market will be closed on Monday.

Other traded contracts ranged between a 20 ringgit drop to gains of 40 ringgit <0#KPO:>. Overall volume shot up to 13,970 lots of 25 tonnes from 10,000 lots.

There is some talk that January production might have fallen by 20 percent, which is the result of plantations cutting down on fertilisers six months ago during the palm price slump," a head trader with a local brokerage said.

Output would then probably be 1.19 million tonnes in January compared with 1.48 million the month before, traders say.

REGIONAL EQUITIES-BANGKOK, Feb 2 (Reuters)-Asian and European stocks fell on Monday as more companies slashed earnings outlooks in the face of worsening global
economic conditions.

Singapore shares fell 2.4 percent to a more than 1-week low on Monday.Thailand's market <.SETI> plunged 2.3 percent to its lowest since Jan. 16, Indonesia <.JKSE> fell 1.7 percent and Vietnam <.VNI> dropped 1.9 percent. The Philippines <.PSI> bucked the trend, up 0.46 percent. Malaysia <.KLSE> was shut on Monday.