Trader's Highlight

DJI-NEW YORK, Jan 20 (Reuters) - The Dow suffered its worst drop of 2010 on Wednesday as U.S. stocks succumbed to fears that China's curbs on bank lending might jeopardize the global economic recovery, while IBM's outlook sparked caution about
the technology sector.

Chinese authorities have ordered some major banks to curb their lending over the rest of this month after an early burst of credit, banking industry sources said.

NYMEX-NEW YORK, Jan 20 (Reuters) - U.S. crude oil futures stayed lower in post-settlement trading on Wednesday even though industry data showed that crude inventories fell last week, going against forecasts that stockpiles increased.

The American Petroleum Institute said that for the week to Jan. 18, crude stocks fell 1.8 million barrels while distillate inventories, which include heating oil supplies, dropped 3.4 million barrels.

On the New York Mercantile Exchange, incoming front-month March crude was down $1.65, or 2.08 percent, at $77.67 a barrel, after falling as low as $77.13. It had settled down $1.58, or 1.99 percent, at $77.74 a barrel, trading from $77.28 to $79.36.

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

CBOT-SOYOIL - March down 0.58 cent at 36.57 cents per lb.

CBOT-SOYBEANS - March down 13-1/2 cents at $9.50 per bushel. Firm dollar, weak crude oil and concerns about the economy in world's top soy buyer China add pressure. Spot contract fell to a three-month low on continuous price chart.

FCPO-KUALA LUMPUR, Jan 20 (Reuters) - Malaysian crude palm oil futures dropped 1.9 percent on Wednesday as high opening stocks this month outweighed a cargo surveyor report of higher exports.

Prices of the vegetable oil, which hit a seven-month high in early January, have been sliding due to high stocks and weaker commodity markets.

The benchmark April contract on the Bursa Malaysia Derivatives Exchange dropped 46 ringgit to 2,444 ringgit ($730.2) per tonne. Overall volume more than doubled to 21,491 lots of 25 tonnes each by the end of the session.

REGIONAL EQUITIES-BANGKOK, Jan 20 (Reuters) - Indonesia hit a 22-month high on
Wednesday as financials and telecoms attracted buying interest because of optimism over the global economy, while Malaysia scaled a similar peak as earnings hopes pushed up Axiata.

Malaysia's index <.KLSE> rose 0.5 percent, earlier hitting its highest since March 5, 2008, with number two telecoms firm Axiata surging 6.5 percent.

Elsewhere, Singapore <.FTSTI> fell 0.7 percent, weighed down by a 1.6 percent loss in Genting Singapore and a 0.8 percent drop in top lender DBS Group .

FCPO Daily: Sideways to lower move likely to continue

Market continue its losing streak as prices weaken further. Thus, we maintain our view sideways to lower in near term. To the downside, immediate support is lies at 2428-2419 (gap left over on 29/11/2009)followed by 2370-2360. While, upside resistance is pegged at 2472-2475 (gap left over on 20/1/2010) followed by 2500.