Friday, October 29, 2010

Trader's Highlight

DJI-NEW YORK, Oct 28 (Reuters) - Global stocks rose despite Wall Street's mixed finish and the dollar's slide on Thursday as investors pulled back before expected upheaval from next week's U.S. elections and the likelihood of more monetary easing.

Oil prices ended higher, supported by an unexpected drop in new U.S. jobless claims to a three-month low and a dollar that weakened over rising worries about the extent of a second round of stimulus by the U.S. Federal Reserve next week.

The Dow Jones industrial average <.DJI> slipped 12.33 points, or 0.11 percent, to end at 11,113.95. The Standard & Poor's 500 Index <.SPX> edged up 1.33 points, or 0.11 percent, to 1,183.78. The Nasdaq Composite Index <.IXIC> rose 4.11 points, or 0.16 percent, to close at 2,507.37.

NYMEX-NEW YORK, Oct 28 (Reuters) - U.S. crude oil futures prices edged up in choppy trading on Thursday, receiving lift from the weak dollar and a report showing U.S. jobless benefits claims fell last week.

Those factors offset a dip by shares on Wall Street as markets remained cautious about the extent of expected Federal Reserve monetary easing that may emerge from the central bank's next policy meeting in early November.

On the New York Mercantile Exchange, December crude rose 24 cents, or 0.29 percent, to settle at $82.18 a barrel, trading from $81.50 to $82.64.

CBOT-CHICAGO, Oct 28 (Reuters) - Chicago Board of Trade grain and soybean complex close on Thursday.

CBOT-SOYBEANS - November up 1-1/4 cents at $12.25 per bushel; January unchanged at $12.36. Soaring wheat lends support along with brisk U.S. export sales, especially to China. Weak dollar, gains in gold also lend support. Gains trimmed on late profit-taking and unwinding of soy/wheat spreads.

CBOT-SOYOIL - December up 0.10 cent at 49.70 cents per lb. Support from higher soybeans and dollar weakness, but crude oil turns lower and profit-taking trimmed gains by the close of trading. Hefty U.S. Census soyoil stocks figure limits rally.

FCPO-KUALA LUMPUR, Oct 28 (Reuters) - Malaysian palm oil futures hit more than a two-year high on Thursday on a firmer soy complex driven by lingering weather concerns and the weaker U.S. dollar.

The palm oil market, which broke a two-day losing streak, was also supported by the start of the annual monsoon season this month that brings more rainfall and can hamper harvesting in major oil palm growing areas in Indonesia and Malaysia.

The benchmark Jan 2011 crude palm oil contract on Bursa Malaysia Derivatives ended 1.6 percent higher at 3,064 ringgit ($986.5), after rising as much as 3,086 ringgit ($993.5) -- its strongest level since July 28. 2008. Traded volume more than doubled to 20,472 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, Oct 28 (Reuters) - Most Southeast Asian stock markets eked out slim gains on Thursday as investors selectively built up positions for the reporting season, and demand for resource shares picked up because of stronger commodity prices.

But share markets were below the highs set early this month and risk appetite was fairly low ahead of a U.S. Federal Reserve meeting next week that is expected to provide clues on the scale of asset purchases in the next round of quantitative easing (QE).

On the day, Singapore <.FTSTI> inched up 0.2 percent, reversing a fall to a three-week low on Wednesday, Malaysia <.KLSE> ended a tad higher, recouping an early loss, and Indonesia <.JKSE> gained 0.4 percent.

Among regional gainers, Singapore's Oversea-Chinese Banking Corp Ltd rose 0.7 percent and Malaysia's CIMB Group Holdings Berhad gained 0.5 percent.

Singapore and Malaysian banks are set to post strong earnings -- following Thai banks -- as bad debt slumps, housing loans rise and fees from underwriting stock offerings as well as wealth management services climb.

Thursday, October 28, 2010

Trader's Highlight

DJI-NEW YORK, Oct 27 (Reuters) - U.S. stocks fell on Wednesday as investors dialed back expectations of how aggressively the Fed would act to stimulate the economy.

With the uncertain outcomes of the U.S. elections and a Fed meeting next week, traders positioned themselves for more volatile markets. The CBOE Volatility index <.VIX> rose 2.4 percent and was up for the third consecutive day.

The Dow Jones industrial average <.DJI> dropped 43.18 points, or 0.39 percent, to 11,126.28. The Standard & Poor's 500 Index <.SPX> lost 3.19 points, or 0.27 percent, to 1,182.45. But the Nasdaq Composite Index <.IXIC> gained 5.97 points, or 0.24 percent, to 2,503.26.

NYMEX-NEW YORK, Oct 27 (Reuters) - U.S. crude oil futures prices settled lower on Wednesday as the dollar strengthened and equities eased amid lowered expectations about economic stimulus that may be forthcoming from the Federal Reserve.

Crude futures closed well above their intraday low as RBOB gasoline futures manageda higher settlement after a government oil inventory report showed a large drop in gasoline stockpiles last week, against a forecast for stocks to be up slightly.

On the New York Mercantile Exchange, December crude fell 61 cents, or 0.74 percent, to settle at $81.94 a barrel, having traded from $80.52 to $82.69.

CBOT-CHICAGO, Oct 27 (Reuters) - Chicago Board of Trade grain and soybean complex close on Wednesday.

CBOT-SOYBEANS - November up 4-3/4 cents at $12.23-3/4 per bushel; January up 5 at $12.36. Followed wheat futures higher with gains posted despite a firm dollar and early profit-taking after market set a 14-month top.

CBOT-SOYOIL - December up 0.07 cent at 49.60 cents per lb. Turned firm in line with soy gains.

FCPO-KUALA LUMPUR, Oct 27 (Reuters) - Malaysian palm oil extended losses on Wednesday and China's soyoil market tumbled from two-year highs as a stronger dollar made commodities priced in the currency expensive and unattractive as an inflation hedge.

The dollar rose broadly on Wednesday as speculation the U.S. Federal Reserve would take a gradualist approach to more quantitative easing next week prompted players to liquidate some short dollar positions.

Benchmark January 2011 palm oil futures on the Bursa Malaysia Derivatives Exchange ended 0.5 percent lower at 3,037 ringgit ($981.3), extending losses to a second day after the market hit a two-year high on Monday.

Traded volume was heavy at 19,420 lots of 25 tonnes each changing hands, almost double from the usual 10,000 lots.

REGIONAL EQUITIES-BANGKOK, Oct 27 (Reuters) - Southeast Asian stock markets fell on Wednesday, finishing below the day's highs as risk appetite faded ahead of the likely release next week of details on a second round of quantitative easing in the United States.

Asian stocks elsewhere also moved lower after a Wall Street Journal article suggested the scale of the Federal Reserve's quantitative easing may be less than some in the market had expected.

Singapore's index <.FTSTI> lost 1.2 percent, at one point hitting a three-week low, Indonesia <.JKSE> dropped 0.8 percent after an early climb to a new record, and Thai stocks <.SETI> fell 1.2 percent, failing to hold above the 1,000 mark.

Singaporean palm oil firm Golden Agri-Resources Ltd fell 1.5 percent after rising to a two-year high on Tuesday, while Thailand's biggest coal mining firm, Banpu Pcl , dropped 2.5 percent after a surge on Tuesday to an all-time high.

Among bright spots, Singapore healthcare provider Thomson Medical Centre rose 5 percent after it reported strong fourth-quarter results.

Shares in Singapore-listed Chinese aluminium producer XinRen Aluminum opened 18.2 percent higher than their issue price at S$0.65 on their debut before ending at S$0.635.

Wednesday, October 27, 2010

Trader's Highlight

DJI-NEW YORK, Oct 26 (Reuters) - Investors showed unusual caution on Tuesday, leaving U.S. stocks little changed before the potential market tumult of next week's U.S. elections and likely announcement of more stimulus from the Federal Reserve.

Next week's high-profile events could signal shifts in both monetary policy and legislative direction, raising fears that trumped Tuesday's earnings news and economic reports.

The Dow Jones industrial average <.DJI> gained 5.41 points, or 0.05 percent, to 11,169.46. The Standard & Poor's 500 Index <.SPX> gained 0.02 point to 1,185.64. The Nasdaq Composite Index <.IXIC> gained 6.44 points, or 0.26 percent, to 2,497.29.

NYMEX-NEW YORK, Oct 26 (Reuters) - U.S. crude oil futures ended slightly higher on Tuesday, helped by improving consumer confidence but with gains limited by a rally in the dollar and broadly lower equities.

Oil also faced resistance as traders took positions ahead of weekly petroleum inventory data forecast to show that crude stocks rose.

On the New York Mercantile Exchange, crude for December delivery settled up 3 cents, or 0.04 percent, at $82.55 a barrel. It traded from $81.81 to $82.88, inside the range of the previous session at $81.45 TO $83.28.

CBOT-CHICAGO, Oct 26 (Reuters) - Chicago Board of Trade grain and soy complex close on Tuesday.

CBOT-SOYBEANS - November up 1-1/4 cents at $12.19 per bushel; January up 1 at $12.31. Boosted by spillover buying after wheat futures soared. Unwinding of soy/wheat spreads noted.

CBOT-SOYOIL - December up 0.06 cent per lb at 49.53 cents per lb. Rebounding crude oil market underpins soyoil despite weakness in soybeans.

FCPO-KUALA LUMPUR, Oct 26 (Reuters) - Malaysian palm oil futures eased on Tuesday on profit taking due to a firmer dollar, but losses were limited by strong Chinese demand for soybeans for crushing into vegetable oils.

The U.S. dollar edged up against the euro on Tuesday, although concerns about what the Federal Reserve might do at its rate setting meeting next week is clouding the outlook for the currency. [USD/]

The benchmark January 2011 crude palm oil contract ended 0.6 percent lower at 3,053 ringgit ($987.4). The previous day, the contract rose to its highest since July 28, 2008. Traded volume stood at 14,988 lots of 25 tonnes each.

Palm oil losses were capped thanks to a little changed U.S. soybeans complex, as strong purchases by China continue to underpin prices.

REGIONAL EQUITIES-BANGKOK, Oct 26 (Reuters) - Most Southeast Asian stock markets gained on Tuesday as investors scooped up blue chip firms during the reporting season, with market players waiting for details of further U.S. quantitative easing.

Indonesia's main index <.JKSE> hit a record high and Thailand's SET index <.SETI> topped the 1,000 mark for the first time since the 1997-98 Asian financial crisis.

Malaysia <.KLSE> ended up 0.37 percent, still below a 33-month high hit early this month, and Vietnam <.VNI> extended its gains into a fourth session, adding 1.5 percent to a one-week high.

Tuesday, October 26, 2010

Trader's Highlight

DJI-NEW YORK, Oct 25 (Reuters) - U.S. stocks rose to a five-and-a-half month high on Monday as a falling dollar, partly driven by expectations of further stimulus by the Federal Reserve, prompted investors to buy riskier assets.

The slide in the greenback continued after a weekend meeting of the Group of 20 stopped short of setting targets to reduce trade imbalances. Bets the Fed will stimulate growth by effectively printing money to buy assets has weakened the dollar, which in turn has lifted commodity prices.

The Dow Jones industrial average <.DJI> gained 31.49 points, or 0.28 percent, to 11,164.05. The Standard & Poor's 500 Index <.SPX> added 2.54 points, or 0.21 percent, to 1,185.62. The Nasdaq Composite Index <.IXIC> advanced 11.46 points, or 0.46 percent, to 2,490.85.

MYMEX-NEW YORK, Oct 25 (Reuters) - U.S. crude oil futures ended 1 percent higher, rising for a second straight session, as the dollar weakened and equities rose, and on comments from Greece's central bank that the worst was over for Greek banks.

Crude futures seesawed all day, retreating from the day's high when the dollar pared losses after falling when the Group of 20 meeting over the weekend disappointed investors.

On the New York Mercantile Exchange, December crude settled up 83 cents, or 1.02 percent, at $82.52 a barrel, trading from $81.45 to $83.28.

CBOT-CHICAGO, Oct 25 (Reuters) - Chicago Board of Trade grain and soy complex close on Monday.

CBOT-SOYBEANS - November up 18-1/4 cents at $12.17-3/4 per
bushel; January up 18-1/2 at $12.30. Falling dollar and brisk export sales of U.S. soy, especially to China, combined to lift soybean futures.

CBOT-SOYOIL - December up 1.17 cents at 49.47 cents per lb. Gains in crude oil, soybean markets supportive.

FCPO-KUALA LUMPUR, Oct 25 (Reuters) - Vegetable oil markets jumped to two-year highs on Monday as the dollar fell broadly after a Group of 20 meeting and on concerns over delayed output in main soy producing areas.

The dollar slid against Asian currencies on Monday after the gathering produced enough agreement to keep in place a status quo trade of selling the U.S. currency and buying equities and commodities. [MKTS/GLOB]

Malaysian benchmark January palm oil ended at 3,071 ringgit ($986.5) after climbing as much as 2.4 percent to hit its highest since July 28, 2008. Volume almost doubled to 19,159 lots from the usual 10,000 lots.

REGIONAL EQUITIES-HONG KONG, Oct 25 (Reuters) - Most Southeast Asian stock markets rose on Monday, with Jakarta hovering near an all-time
high on optimism that Indonesian companies will report upbeat earnings this week, underpinned by the country's solid growth.

Shares in Singapore were trading close to a 29-month high posted in middle of this month, with the market focusing on a $8.3 billion takeover bid by local bourse operator Singapore Exchange for Sydney-based ASX Ltd .

In Singapore, the market was riveted by news that SGX had agreed to take over Australia's bourse operator to create Asia's fourth-largest stock exchange.

But traders said there were concerns SGX was paying too high a price, sending its stock 6 percent lower. Shares in ASX ended up 19.4 percent. Sentiment was also buoyed by gains in the broader Asian market, with the MSCI index of Asia-Pacific stocks outside Japan <.MIAPJ0000PUS> up 1.7 percent as of 0924 GMT. Malaysian shares <.KLSE> were little changed.

Monday, October 25, 2010

Trader's Highlight

DJI-NEW YORK, Oct 22 (Reuters) - U.S. stocks capped a third straight week of gains on Friday as encouraging earnings helped the market sustain upward momentum, led by Baidu Inc , the latest tech company to beat estimates.

The market has defied expectations for a pullback following a strong rally prior to the earnings season. Some investors were expecting the results to provide an excuse for broad profit-taking.

The Dow Jones industrial average <.DJI> dropped 14.01 points, or 0.13 percent, to 11,132.56. The Standard & Poor's 500 Index <.SPX> gained 2.82 points, or 0.24 percent, to 1,183.08. The Nasdaq Composite Index <.IXIC> gained 19.72 points, or 0.80 percent, to 2,479.39.

NYMEX-NEW YORK, Oct 22 (Reuters) - U.S. crude oil futures ended more than 1 percent higher on Friday, on late short-covering ahead of the weekend and positive German business sentiment data lifting prices, as the dollar index seesawed ahead of a G20 finance ministers' decision on currencies.

Strikes in France over pension reform that passed the French senate late in the day remained supportive, analysts said. The strike included walkouts in French refineries and a key oil port.

On the New York Mercantile Exchange, crude for December delivery settled at $81.69 a barrel, up $1.13, or 1.4 percent. It traded from $80.41 to $81.78, an "inside" day, in which the day's high and low are within the previous day's range. It followed a 2 percent price slump on Thursday.

CBOT-CHICAGO, Oct 22 (Reuters) - Chicago Board of Trade grain and soy complex futures close on Friday.

CBOT-SOYBEANS - November down 2 cents at $11.99-1/2 per bushel; January down 1-1/2 at $12.11-1/2. Pre-weekend profit-taking and consolidation weighed on the market with light fund selling adding pressure. November options expired on Friday and November futures settled near the $12-per-bushel options strike price.

CBOT-SOYOIL - December up 0.06 cent at 48.30 cents per lb.

FCPO-KUALA LUMPUR, Oct 22 (Reuters) - Global vegetable oils stayed just below their two year highs on Friday as traders awaited more signs of continued demand from China for agriculture commodities and a stronger crude oil market.

China, over the past week, purchased large quantities of soybeans to satisfy strong cooking oil and animal feed demand -- helping boost vegetable oil markets.

The rally was also supported by a general weakness in the U.S. dollar, making palm oil, soybeans and soyoil cargoes priced in that currency cheaper.

The benchmark January 2011 crude palm oil on the Bursa Malaysia Derivatives Exchange ended 0.6 percent higher at 3,007 ringgit ($968.7) -- hovering below a more than two-year high of 3,021 ringgit hit the previous day.

REGIONAL EQUITIES-BANGKOK, Oct 22 (Reuters) - Most Southeast Asian stock markets posted small gains on Friday, with foreign buying helping push Philippine shares to a record high, amid optimism about profits as the earnings season gets under way.

Share markets pulled back on the week, however, failing to pass multi-year highs set the week before, and dealers said investors were waiting for details of a second round of quantitative easing in the United States, probably in November.

Singapore <.FTSTI> hovered below a 29-month high, Malaysia <.KLSE> came off a 33-month high and Indonesia <.JKSE> moved below a record high, while Thailand <.SETI> failed to get past the 1,000 mark, which was within sight last week for the first time since the 1997-98 Asian financial crisis.

Friday, October 22, 2010

Trader's Highlight

DJI-NEW YORK, Oct 21 (Reuters) - Wall Street edged higher in a volatile session on Thursday, torn between strong corporate earnings and a surge in the U.S. dollar.

The market swung in a wide range throughout the day as investors reacted to gyrations in the currency markets and as relatively strong earnings took a back seat.

The Dow Jones industrial average <.DJI> gained 38.60 points, or 0.35 percent, to 11,146.57. The Standard & Poor's 500 Index <.SPX> gained 2.09 points, or 0.18 percent, to 1,180.26. The Nasdaq Composite Index <.IXIC> gained 2.28 points, or 0.09 percent, to 2,459.67.

NYMEX-NEW YORK, Oct 21 (Reuters) - U.S. crude oil futures prices slumped more than 2 percent on Thursday as the dollar's recovery from an earlier dip sparked a sell-off while doubts resurfaced about the extent of potential U.S. monetary easing.

The slide followed crude oil's biggest daily percentage gain in more than a month on Wednesday, following a 4 percent dive the previous day, when China raised interest rates.

On the New York Mercantile Exchange, December crude fell $1.98 or 2.4 percent to settle at $80.56 a barrel, trading from $80.09 to $82.70.

CBOT-CHICAGO, Oct 21 (Reuters) - Chicago Board of Trade grain and soy complex close on Thursday.

CBOT-SOYBEANS - November down 10-1/2 cents at $12.01-1/2 per bushel; January down 10-3/4 at $12.13. Upturn in the dollar weighed. Also pressured by spillover from corn and wheat, but market underpinned by strong export sales of U.S. soy, especially to China.

CBOT-SOYOIL - December down 0.23 cent at 48.24 cents per lb. Following weakness in soybeans and downturn in crude oil.

FCPO-KUALA LUMPUR, Oct 21 (Reuters) - Dalian soyoil hit a 26-month high on Thursday and Malaysian palm oil rose above 3,000 ringgit as traders bet strong vegetable oil demand will continue to drive soybean crushing in China.

A flurry of Chinese economic data issued earlier in the day showed the world's second-largest economy was strong but far from overheating, signalling agriculture markets that imports will stay strong.

The most active May 2011 soyoil contract on the Dalian Commodity Exchange jumped 2.8 percent to settle at 9,192 yuan ($1,382) after going as high as 9,260 yuan ($1,392) a tonne -- the highest for the fifth month since Aug. 26 2008.

China's soybean demand also supported third-month palm oil on Bursa Malaysia , which touched an intraday high of 3,021 ringgit ($968.3) a tonne -- a level unseen since July 28, 2008.

Malaysia's palm oil eased to settle at 2,990 ringgit ($958.3) per tonne. Traded volume was heavy with 14,910 lots of 25 tonnes each compared to the usual 10,000 lots.

Some analysts said palm oil breaching the 3,000 ringgit level may not be sustainable even though Reuters technical analysis showed palm oil has resumed its uptrend, as the previous wave "5" peak at 2,970 ringgit per tonne has been surpassed.

REGIONAL EQUITIES-BANGKOK, Oct 21 (Reuters) - Most Southeast Asian stock markets edged higher on Thursday, regaining a little lost ground as investors sought value in resource shares in particular.

Asian stocks in general recovered and the dollar rose after U.S. Treasury Secretary Timothy Geithner said ahead of a G20 meeting that major currencies were roughly in alignment.

Equity indexes in Malaysia <.KLSE> and Indonesia <.JKSE> eked out small gains of 0.3 percent, Thailand <.SETI> inched up 0.07 percent, Vietnam <.VNI> ended up 0.7 percent and the Philippines <.PSI> rose 1.3 percent.

But Singapore <.FTSTI> erased its early small gain to end 0.5 percent lower. Among gains in the region, Singaporean palm plantation firm Wilmar International Ltd rose 1.8 percent, reversing a loss in the previous session, and Malaysia's IOI Corp Bhd gained 0.4 percent.

In Singapore, Keppel Corp rose 0.6 percent. After the close, the world's largest rig-builder reported a better-than-expected 8.4 percent rise in quarterly net profit, helped by strong margins in its offshore marine business.

Thursday, October 21, 2010

Trader's Highlight

DJI-NEW YORK, Oct 20 (Reuters) - Wall Street bounced back on Wednesday as a fall in the dollar spurred buying in industrial and commodity-linked shares, while another batch of strong corporate earnings added to gains.

Equities and the greenback have had an inverse relationship lately because the Federal Reserve's ultra-low interest rate policy has led investors to buy riskier assets like stocks and commodities.

The Dow Jones industrial average <.DJI> gained 129.35 points, or 1.18 percent, to 11,107.97. The Standard & Poor's 500 Index <.SPX> rose 12.27 points, or 1.05 percent, to 1,178.17. The Nasdaq Composite Index <.IXIC> added 20.44 points, or 0.84 percent, to 2,457.39.

NYMEX-NEW YORK, Oct 20 (Reuters) - U.S. crude oil futures prices rose on Wednesday on a weaker dollar and as equities markets bounced a day after share and commodities prices were pressured after China raised interest rates to cool inflation in its booming economy.

Oil investors awaited oil inventory data from the U.S. Energy Information Administration on the day the NYMEX November crude contract expires.

On the New York Mercantile Exchange, November crude rose 71 cents, or 0.9 percent, to $80.20 a barrel at 8:22 a.m. EDT (1222 GMT), trading from $79.35 to $80.63.

CBOT-CHICAGO, Oct 20 (Reuters) - Chicago Board of Trade grain and soy complex close on Wednesday.

CBOT-SOYBEANS - November up 32 cents at $12.12 per bushel; January up 32-1/4 cents at $12.23-3/4. Rallied to 14-month high as china kept buying U.S. soy and dollar slid. New contract high set.

CBOT-SOYOIL - December up 1.37 cents at 48.47 cents per lb. Support from rally in soybeans and gains in crude oil. Rallied to new contract highs.

FCPO-KUALA LUMPUR, Oct 20 (Reuters) - Palm oil futures hit a new 27-month high and other vegetable markets gained as traders banked on strong export demand from China despite the country's central bank raising interest rates.

Malaysia's January 2011 palm oil contract jumped as much as 2.3 percent to 2,985 ringgit ($960.7) per tonne, trading at a level unseen since August 2008 and hovering just below the crucial 3,000 ringgit level.

Traded volume almost doubled to 19,252 lots of 25 tonnes from each the usual 10,000 lots as traders put aside concerns that China's demand would stall in the country's efforts to tighten credit.

The most active May soyoil futures on China's Dalian Commodity Exchange ended down just 0.4 percent at 8,980 yuan ($1,352) a tonne, after falling to over a month low of 8,812 yuan earlier in the day.

REGIONAL EQUITIES-BANGKOK, Oct 20 (Reuters) - Southeast Asian stock markets fell on Wednesday, feeling the pinch from an unexpected 25 basis point rate increase in China, with weak global commodity prices weighing on resource shares across the region.

However, Asian stocks in general pared early losses after the initial shock from China's first rate rise in nearly three years, which had investors fretting it may be embarking on a tightening cycle.

Singapore's Straits Times Index <.FTSTI> finished down 0.4 percent, Malaysia's main share index <.KLSE> edged down 0.1 percent, Indonesia <.JKSE> fell 0.39 percent and Thailand's SET index <.SETI> fell 0.12 percent.

Wednesday, October 20, 2010

Breaking News-RTRS - China surprises with first rate rise since 2007

BEIJING, Oct 19 (Reuters) - China's central bank surprised on Tuesday with its first increase of interest rates in nearly three years, a move that reflects concern about resurgent asset prices and could mark the start of a more aggressive phase of monetary tightening in the world's fastest-growing major economy.
The People's Bank of China said it was raising benchmark rates by 25 basis points, taking one-year deposit rates to 2.5 percent and one-year lending rates to 5.56 percent.
If there was ever any doubt about China's role in driving the stuttering global economic recovery, the impact was felt by markets across the board. Oil and gold prices tumbled, stocks turned negative in Europe and the dollar jumped.

Trader's Highlight

DJI-NEW YORK, Oct 19 (Reuters) - U.S. stocks posted their biggest loss in two months on Tuesday on fears banks might be on the hook for billions of dollars in souring mortgage bonds.

The afternoon selloff hit investors already reeling from an unexpected credit tightening by China and disappointing financial results from Apple and IBM .

The biggest scare came on news that Bank of America and possibly others may be forced to take back billions of dollars in mortgages that should not have been bundled into bonds.

The Dow Jones industrial average <.DJI> dropped 165.07 points, or 1.48 percent, to 10,978.62. The Standard & Poor's 500 Index <.SPX> lost 18.81 points, or 1.59 percent, to 1,165.90. The Nasdaq Composite Index <.IXIC> fell 43.71 points, or 1.76 percent, to 2,436.95.

NYMEX-NEW YORK, Oct 19 (Reuters) - U.S. crude oil futures ended more than 4 percent lower on Tuesday, suffering the biggest one-day percentage loss in more than eight months, as the dollar strengthened on safe-haven buying following a surprise interest rate increase in China.

Investors fear the move could dampen Chinese and global growth and slow the country's voracious demand for oil and other commodities.

Crude futures fell back after rising more than 2 percent on Monday, lifted by higher refined products futures as strikes in France continued to affect fuel production and oil shipping.

On the New York Mercantile Exchange, November crude settled at $79.49 a barrel, falling $3.59, or 4.32 percent. The November contract expires on Wednesday.

CBOT-CHICAGO, Oct 19 (Reuters) - Chicago Board of Trade grain and soy complex close on Tuesday.

CBOT-SOYBEANS - November down 4 cents at $11.80 per bushel; January down 3-1/2 at $11.91-1/2. Hit by soaring dollar, lower crude oil and stock market in addition to weight from active harvest of a likely record large U.S. soybean crop.

CBOT-SOYOIL - December down 0.56 cent at 47.10 cents per lb. Losing ground to soymeal on meal/oil spreads; declines in crude oil add pressure.

FCPO-KUALA LUMPUR, Oct 19 (Reuters) - Malaysian palm oil rose on Tuesday along with other vegetable oil markets, although a firmer U.S. dollar and concerns of growing stocks weighed on prices.

Palm oil has rallied in the past week and come within striking distance of the 3,000 ringgit level after the U.S. government cut its soybean crop forecast and the dollar weakened. That rally may have been overdone, traders said.

Technicals are not very promising either. A Reuters analysis showed palm oil is likely to trade at 2,849 ringgit per tonne.

Malaysia's benchmark January palm oil futures climbed more than 1 percent to trade at 2,919 Malaysian ringgit ($944.6). Traded volume rose to 18,175 lots of 25 tonnes each from the usual 10,000 lots.

REGIONAL EQUITIES-BANGKOK, Oct 19 (Reuters) - Most Southeast Asian stock markets rose on Tuesday as investors bought into growing sectors but the region saw some foreign money flow out despite the prospect of further U.S. monetary easing.

With the results season for Southeast Asian firms beginning, Thailand <.SETI> clawed back from a one-week low on Monday thanks to buying in banks, while the indexes of Singapore <.FTSTI>, Malaysia <.KLSE> and Indonesia <.JKSE> eked out small gains.

Despite the gain, Jakarta recorded $147.7 million in outflows on the day, the biggest this year, according to Thomson Reuters data.

In Singapore, medium-caps led gainers, with casino operator Genting Singapore Plc rising 2.4 percent, while in Malaysia financial firm RHB Capital Bhd jumped 2.3 percent.

Tuesday, October 19, 2010

Trader's Highlight

DJI-NEW YORK, Oct 18 (Reuters) - U.S. stocks rose on Monday, led by gains in financials as Citigroup reported stronger-than-expected profits and concerns eased about the sector's potential exposure to foreclosure problems.

"The financials last week were getting hammered over questions over foreclosure proceedings ... now it doesn't seem to be as all-encompassing," said Marc Pado, U.S. market strategist at Cantor Fitzgerald & Co in San Francisco.

Corporate results so far suggest "the banks are slowly getting better, getting repaired. And I think that's been the game plan all along," he said.

The Dow Jones industrial average <.DJI> was up 47.15 points, or 0.43 percent, at 11,109.93. The Standard & Poor's 500 Index <.SPX> added 3.48 points, or 0.30 percent, at 1,179.67. The Nasdaq Composite Index <.IXIC> inched up 1.19 points, or 0.05 percent, at 2,469.96.

NYMEX-NEW YORK, Oct 18 (Reuters) - U.S. crude oil futures ended 2.25 percent higher on Monday, the biggest one-day gain in two weeks, lifted as refined product futures rose on prolonged strikes in France that have hit shipping and refineries.

In early trading, the dollar's strength had pressured oil, but the greenback later gave up gains against the euro and a basket of currencies <.DXY> adding spring to the oil price bounce.

On the New York Mercantile Exchange, crude for November delivery rebounded from Friday's loss and settled $1.83 higher, or 2.25 percent, at $83.08 a barrel, trading from $80.35 to $83.18. The day's gain was the highest since front-month prices rose 2.71 percent on Sept. 30.

CBOT-CHICAGO, Oct 18 (Reuters) - Chicago Board of Trade grain and soybean complex close on Monday.

CBOT- SOYBEAN - November down 1 cent at $11.84 a bushel; January down 3/4 at $11.95. Pressured by active U.S. soybean harvest and profit-taking amid overbought technicals, along with better crop weather in South America. But strong export demand and bullish weekly inspections data underpin market and deferred months ended firm as the market begins to buy soy acreage for 2011.

CBOT - SOYOIL - December down 0.11 cent at 47.66 cents per lb.

FCPO-KUALA LUMPUR, Oct 18 (Reuters) - Malaysian palm oil fell to its lowest in a week and other vegetable oil prices stalled as a stronger dollar and more favourable weather outlooks in South America sapped sentiment.

Palm oil -- which was within striking distance of the 3,000 ringgit level last hit in August 2008 -- came under pressure from some technical selling and weaker-than expected exports in October.

Malaysia's benchmark January 2011 palm oil contract ended 1.6 percent lower at 2,889 ringgit ($937.4) after going as a low as 2,877 ringgit --- a level last traded on Oct. 11.

REGIONAL EQUITIES-BANGKOK, Oct 18 (Reuters) - Southeast Asian stock markets fell on Monday as investors cashed in recent gains, with expectations of a new round of U.S. monetary easing generally already priced in.

Equities indexes in Singapore <.FTSTI> and Malaysia <.KLSE> came off multi-year highs hit last week. Indonesia <.JKSE> fell 0.8 percent while the Philippines <.PSI> was flat, both having recently hit record highs.

U.S. Federal Reserve chief Ben Bernanke cemented expectations on Friday of more U.S. stimulus to fend off deflation, prompting a reversal of trades that had been pushing the dollar lower and most Asian stocks higher for weeks.

In Southeast Asia, selling hit commodity-related shares, which had led the recent rally. Malaysia's top power producer, Tenaga Nasional , lost 1.2 percent, while Thailand's biggest energy firm, PTT , dropped 1.6 percent.

Singapore-listed Wilmar International Ltd. , the world's largest listed palm oil firm, was down 1.1 percent while Philippine geothermal power firm Energy Development Corp was 2 percent lower.