Trader's Highlight

DJI-NEW YORK, Nov 4 (Reuters) - U.S. stocks rallied but lost steam on Wednesday after the Federal Reserve said it would keep rates near zero for "an extended period" even as it expressed confidence in the economic recovery.

Stocks pushed higher in the hour following the FOMC statement, after the Fed kept its benchmark federal funds rate unchanged in a range of zero to 0.25 percent.But the market was unable to hold those gains as it succumbed to selling pressure in the last half-hour of trading.

The Dow Jones industrial average <.DJI> gained 30.23 points, or 0.31 percent, to end at 9,802.14, after rising as much as 156.13 points, or 1.6 percent, in the hour after the FOMC statement to touch a session high at 9,928.04. The Standard & Poor's 500 Index <.SPX> edged up 1.09 points, or 0.10 percent, to finish at 1,046.50. But the Nasdaq Composite Index <.IXIC> slipped 1.80 points, or 0.09 percent, to close at 2,055.52.

NYMEX-NEW YORK, Nov 4 (Reuters) - U.S. crude oil futures ended up on Wednesday, though well below the day's highs, buoyed by an optimistic economic outlook from the Federal Reserve and a surprise weekly drawdown in crude inventories.

On the New York Mercantile Exchange, December crude settled up 80 cents, or 1.01 percent, at $80.40 a barrel, trading from $79.12 to $81.06.

CBOT-SOYBEANS - November down 11-1/4 cents at $9.95-1/2 a bushel; deferreds down 6 to 11-1/2.

Prospects for a record U.S. crop and better harvest weather weigh along with increased hedge pressure.

CBOT-SOYOIL - December up 0.02 cent at 37.55 cents per lb; deferreds up 0.03 to down 0.04.

FCPO-KUALA LUMPUR, Nov 4 (Reuters) - Malaysian crude palm oil futures jumped as much as 3.8 percent on Wednesday to hit two-month highs as rising crude oil markets [O/R] boosted global vegetable oil prices.

But underlying palm sentiment was weak due to fears that stock levels in Malaysia and Indonesia were building up, traders said.

The benchmark January palm oil contract on the Bursa Malaysia Derivatives Exchange gained as much as 83 ringgit to 2,273 ringgit ($665) a tonne, a level unseen since Sept. 2, before settling at 2,260 ringgit.

Overall volumes shot up to 17,119 lots of 25 tonnes each from the usual 10,000 lots on speculative trades.

REGIONAL EQUITIES-BANGKOK, Nov 4 (Reuters) - Most Southeast Asian markets rose
on Wednesday, recovering from losses the previous session, with banks and palm oil stocks leading gains in Malaysia, pushing the market to its highest in a week.

Overall trading was light as investors remained cautious before a U.S. Federal Reserve statement on interest rates and the economy later on Wednesday.

Malaysia's index <.KLSE> ended up 0.93 percent, Singapore's index <.FTSTI>, after falling two days in a row, bounced back 1.03 percent, Thai stocks <.SETI> climbed 2.68 percent and Indonesia <.JKSE> edged up 1.62 percent.

Gains in Malaysia were driven by top palm planter Sime Darby , the largest stock on the bourse by market value, which rose 0.7 percent to a one-week high after an upbeat price forecast by industry analyst Oil World. [ID:nL381260]

Malaysian banks rose on hopes that earnings will get a boost next year when the economy recovers, with top lender Maybank up 1.5 percent, number two CIMB adding 0.64 percent and third-ranked Public Bank up 0.93 percent.

Similarly in Singapore, United Overseas Bank rose 1.5 percent, number two Oversea-Chinese Banking Corp gained 1.7 percent and DBS , Southeast Asia's biggest lender, added 0.62 percent.

FCPO Daily: More room to upside potential

A convincing breakout from the 2250 levels has proved to us that bulls won the battle and has giving us a more clearer market direction. Thus, market looks may continue to march higher in near term. As for now, we are looking the upside resistance at 2280-2299 (gap left over on 2/9/2009) followed by 2335-2352 (gap left over on 1/9/2009). Downside support is lies at 2180 followed by 2150-2130 levels.