Trader's Highlight

DJI-NEW YORK, Dec 3 (Reuters) - U.S. stocks fell on Thursday after data showed the vast U.S. services sector unexpectedly shrank in November and investors worried that Friday's non-farm payrolls report may show the recovery is sluggish.

The Dow Jones industrial average <.DJI> dropped 86.53 points, or 0.83 percent, to end at 10,366.15. The Standard & Poor's 500 Index <.SPX> slipped 9.32 points, or 0.84 percent, to close at 1,099.92. The Nasdaq Composite Index <.IXIC> fell 11.89 points, or 0.54 percent, to finish at 2,173.14.

NYMEX-NEW YORK, Dec 3 (Reuters) - U.S. crude futures ended lower in seesaw trading on Thursday amid economic worries, after a report showed that the services sector weakened in November. Traders were cautious ahead of Friday's unemployment report
for November and as crude futures remained pressured by Wednesday's government data showing domestic crude inventories rose more than expected last week.

On the New York Mercantile Exchange, January crude settled down 14 cents, or 0.18 percent, at $76.46 a barrel, trading from $75.54 to $77.50. At the close, the discount for NYMEX January crude against February crude was $1.75, after widening on Wednesday as much as $1.93, the steepest since Aug. 19.

CBOT-SOYBEANS - January up 13 cents per bushel at $10.47. Strong demand for U.S. soy including brisk exports giving soybean futures support but market on edge amid choppy two-sided trading in the dollar and crude oil.

CBOT-SOYOIL - December unchanged at 39.75.

FCPO-KUALA LUMPUR, Dec 3 (Reuters) - Malaysian crude palm oil futures edged 0.4 percent lower on Thursday after an industry analyst said the recent rally was overdone and did not reflect rising stock levels.

The benchmark February contract on the Bursa Malaysia Derivatives Exchange settled down 11 ringgit at 2,478 ringgit ($734.4) a tonne, after falling as low as 2,463 ringgit earlier in the session.

REGIONAL EQUITIES-BANGKOK, Dec 3 (Reuters) - Southeast Asian stock markets
mostly rose on Thursday, with Singapore hitting a 16-month high and Thai stocks rallying after a slump the previous day caused by a court ruling that hurt heavyweight PTT and others.

Singapore's benchmark stock index <.FTSTI> ended up 0.42 percent at its highest since August 2008, while Malaysia's main index <.KLSE> closed up 0.09 percent, having hit a one-week high during the day.

A rise in Malaysia's second-largest lender, CIMB Group , helped limit falls in the Kuala Lumpur market. The stock rose 0.93 percent after Moody's Investors Service said it had changed the outlook on CIMB Bank's Financial Strength Rating
to positive from stable.