Trader's Highlight

DJI-NEW YORK, July 6 (Reuters) - The Dow industrials rose and the S&P 500 rebounded in late trading on Monday as investors' concerns about the strength of an economic recovery triggered a move into defensive stocks.

The Dow Jones industrial average <.DJI> gained 44.13 points, or 0.53 percent, to 8,324.87. The Standard & Poor's 500 Index <.SPX> added 2.30 points, or 0.26 percent, to 898.72. But the Nasdaq Composite Index <.IXIC> dropped 9.12 points, or 0.51 percent, to 1,787.40.

Investors were also looking ahead to the start of second- quarter earnings season on Wednesday for an indication of how corporations are weathering the economic downturn. Data compiled by Thomson Reuters shows about a 36 percent decline
in S&P 500 earnings from a year ago. That would be roughly the same result as the first quarter.

NYMEX-NEW YORK, July 6 (Reuters) - U.S. crude oil futures ended lower for the fourth day in a row on Monday as economic concerns reflected in dismal jobs data, tepid demand and rising fuel inventories pressured the oil markets. Markets await a Group of Eight summit July 8-10.

On the New York Mercantile Exchange, August crude settled down $2.68, or 4.02 percent, at $64.05 a barrel, the lowest settlement since May 27's $63.45. It traded from $63.40 to $67.17.

CBOT-SOYBEANS - July down 43 cents at $12.00 a bushel.Near-ideal crop weather in the United States, firm dollar, and sharp drop in crude oil weigh on soy futures. Prices drop to one-week low.

CBOT-SOYOIL - July down 0.89 cent at 34.29 cents a lb. Falling crude oil, lower soybeans and firm dollar combined to weigh on soyoil futures.

FCPO-KUALA LUMPUR, July 6 (Reuters) - Malaysian crude palm oil futures bounced off 3-month lows on Monday as India left import duties unchanged for vegetable oils, although sharply lower crude oil dented investor sentiment.

The benchmark September contract on Bursa Malaysia's Derivatives Exchange fell as much as 75 ringgit to 2,100 ringgit ($592.9) per tonne, a level unseen since April 2, but settled down 46 ringgit at the end of the session. Volumes stood at 11,624 lots of 25 tonnes each.

REGIONAL EQUITIES-SINGAPORE, July 6 (Reuters) - Indonesian shares fell on Monday as lower crude oil prices hurt commodity stocks and on investor concerns that the upcoming presidential election will not produce a clear winner and will have to go to a second round.

Most other Southeast Asia stock markets were also lower, in line with global trends, on worries about how long it will take the U.S. economy to recover from its long recession and begin buying Asian goods again.

The Indonesia Composite Index <.JKSE> ended 1.94 percent lower while Singapore's Straits Times Index <.FTSTI> dropped 1.43 percent, and Malaysia's index <.KLSE> fell 0.64 percent. The Philippine index <.PSI> rose 0.73 percent. Vietnam <.VNI> finished 4.32 percent higher.

Trader's Comment: Palm oil futures hovering in tight range

Palm oil futures hovering at lower level between 2100-2146 through out the day, tracking the sharp fall of Asian time NYMEX crude oil. Nevertheless, prices seem well supported at lower end today as it tested 2100 level and defended well. Market sentiment had been quite bearish initially due to falling crude oil prices, coupled with the statement made by top industry analyst Mr. Dorab Mistry who said that India may impose a nominal tax on CPO imports and marginally raise the levy on refined oils. However, the outcome of India Budget today had been silence on this issue, implying that India maintained its current status of not imposing any tax yet on CPO. This led Benchmark Sep09 to stabilize and ended RM46 lower at 2129. Other vege oil market were also in defensive mode as eCBOT soy oil drop 1.6% while Dalian palm ended inching lower.

DJI Daily: Still in sideways

Market remains in sideways move with support and resistance maintain at 8200-8000 and 8600-8800 level respectively.

KLSE Daily: Cover gap

Market losing ground further to cover partial of the left over gap since 25/6/2009 at 1064-1059. Market momentum getting weaker and may continue to move lower to cover the full downside gap. To the upside, resistance is at 1080.

FKLI Daily: Losing upside momentum

Market is losing its upside momentum following another long black candle printed had further hammered the immediate technical landscape. We are now looking for the 1st support at 1055-1050 followed by the next underline support at 1030. Violation of it may provide more room to bias downside potential. To the upside, resistance is at 1075-1080.

FCPO Daily: Struggle to survive

Market is struggling to survive and trying to defend at 2100 mark after the recent sell down. However, overall technical landscape remains weak and may due for a consolidation phase in near term. We are now looking for the immediate support at 2085. Immediate upside resistance is at 2150-2180.