Trader's Highlight

DJI-NEW YORK, Sept 1 (Reuters) - U.S. stocks fell for a third straight day on Tuesday, spooked by uncertainty over the health of financials and concerns that the explosive rally since March may have run ahead of economic reality.

The Dow Jones industrial average <.DJI> tumbled 185.68 points, or 1.96 percent, to close at 9,310.60. The Standard & Poor's 500 Index <.SPX> fell 22.58 points, or 2.21 percent, to 998.04. The Nasdaq Composite Index <.IXIC> slid 40.17 points, or 2.00 percent, to 1,968.89.

NYMEX-NEW YORK, Sept 1 (Reuters) - U.S. crude oil futures pared losses slightly in post-settlement trading on Tuesday after the American Petroleum Institute's inventory data showed a larger-than-expected crude stock drawdown last week.

On the New York Mercantile Exchange, at the 5:15 p.m. EDT (2215 GMT) close of electronic trading, October crude was down $1.74, or 2.49 percent, at $68.22 a barrel. It had settled down $1.91, or 2.73 percent, at $68.05, trading $68 to
$71.37.

CBOT-SOYBEANS - September down 86 cents at $10.14 a bushel; new-crop November down 24 at $9.55-1/2.

Good crop weather in the United States weighs and front-month spread corrects as longs liquidate September. Spot soybean basis markets hold firm given strong nearby demand, tight stocks and no Sept deliveries. But some river terminals are backing off spot bids

CBOT-SOYOIL - September down 0.46 cent at 34.53 cents per lb. Spillover sales from soybeans, crude oil.

FCPO-KUALA LUMPUR, Sept 1 (Reuters) - Malaysian crude palm oil futures dropped as much as 3 percent to hit a near two-week low on Tuesday as weaker soyoil prices dragged on sentiment and some traders unwound positions on fears of slowing exports.

The benchmark November contract on the Bursa Malaysia Derivatives Exchange fell 71 ringgit to a low of 2,299 ringgit ($651.3) per tonne, a level unseen since Aug 21., before settling at 2,303 ringgit.

REGIONAL EQUITIES-BANGKOK, Sept 1 (Reuters) - Singapore's stock market posted a
small gain on Tuesday, with DBS up after it appointed a new CEO, but most other markets in the region retreated from their highs as a drop in oil prices weighed on energy and commodity stocks.

Singapore's index <.FTSTI> inched up 0.13 percent, after a 1.89 percent fall on Monday, with DBS Group , Southeast Asia's biggest lender, rising 0.63 percent.

It has appointed Piyush Gupta from Citigroup as its new chief executive, hoping the veteran banker will help it expand in India and China.

Indonesia <.JKSE> lost 0.6 percent, Malaysia's index <.KLSE> eased 0.3 percent on resuming trade after a market holiday on Monday and the Philppine market <.PSI>, which was also closed on Monday, dropped 1.08 percent.

FCPO Daily: More room to bias downside potential

Market tested the physiological support at 2300 levels had weaken further the immediate outlook and provided more room to bias downside potential in near term. As for now, we are looking for the downside support at 2280 followed by 2234. To the upside, resistance is at 2335-2352 (gap left over on 1/9/2009).

NYMEX Crude Daily: Looking for support

Market is searching for support after fail to challenge the overhead resistance at USD 75. Thus, market likely to move sideways to bias downside potential in near term. We are looking for the immediate downside support at USD 66.11 followed by 65.23. To the upside, immediate resistance is stood at 73.38-73.52 followed by 75.

SSE Daily: Still bearish

Overall technical landscape remains in bearish environment. Hence, market may continue to move lower in near term with immediate downside support is pegged at 2639-2635 (unfilled gap left over since 1/6/2009) followed by 2538 levels. While, upside resistance is stood at 2817-2843 (gap left over on 31/8/2009).

DJI Daily: Technically overbought

Market was technically overbought after holding its sideways posture for more than a week. Thus, market may enter into correction zone in near term. To the upside, resistance is looking at 9630 levels. To the downside, support is pegged at 9200-9100 levels.

FKLI Daily: Trying to hold ground

Market is defending well and continue holding ground. Thus, uptrend remains intact as long as 1149 levels is supported. To the upside, resistance is looking at 1171.5-1173.5 (gap left over on 1/9/2009).

Trader's Comment: Palm oil futures lost more than 3% today on weaker export.

Palm oil futures lost more than 3% today on weaker export. Benchmark Nov09 immediately fell to intra day low of 2299 after gap down RM58 to open at 2312 following the sharp fall of overnight NYMEX crude oil and CBOT soy oil prices. As external markets in Asian time trading halted from further falling and recovered slightly this had provided some cushion to the local front. Nov09 then bounced back to hit the intra day high of 2335 in the early second session. However, end-Aug export data released by private cargo surveyor SGS reported a decline of 7.9% weaker than the earlier ITS which is down 4.9% compare the same period of last month had weighed on the market sentiment. This had prompted speculative selling emerged and sent prices to settle RM 67 lower at 2303 with total daily volume stood at 16,801 contract changed hands.