Breaking News-RTRS-China commerce minister sees inflation as 2010 risk

BEIJING, March 11 (Reuters) - Rising inflation, imported via global commodity prices, is China's major policy concern this year, Commerce Minister Chen Deming said on Thursday.
Chen was speaking to reporters during the annual session of parliament, hours after the government reported a rise in consumer price inflation to 2.7 percent in the year to February from 1.5 percent in the 12 months to January.

Breaking News-RTRS-US Senate passes bill to extend biodiesel credit

WASHINGTON, March 10 (Reuters) - The U.S. Senate approved a bill on Wednesday that includes revival of the $1-a-gallon biodiesel tax credit for this year, which the renewable fuels industry has said is needed to increase output.
The overall bill, approved 62-36, is a $149 billion package of jobless aid and tax breaks Democrats hope will help spur job creation. The legislation now heads to the House of Representatives, where lawmakers could make changes of their own.

Trader's Highlight

DJI-NEW YORK, March 11 (Reuters) - Global stocks rebounded and oil edged higher on Thursday on renewed optimism over the U.S. economy, overcoming a scare that interest rates may be heading higher because of an inflation spike in China.

The benchmark S&P 500 climbed to a 17-month closing high in a late-day rally sparked by rising retail and banking shares, including a 5.6 percent jump in Citigroup Inc .

Shares worldwide had been under water for most of the day after the spurt in Chinese inflation to 16-month highs sparked concerns China may tighten monetary policy sooner rather than later to curb economic growth and inflation.

The Dow Jones industrial average <.DJI> closed up 44.51 points, or 0.42 percent, at 10,611.84. The Standard & Poor's 500 Index <.SPX> climbed 4.60 points, or 0.40 percent, at 1,150.21. The Nasdaq Composite Index <.IXIC> was up 9.51 points, or 0.40 percent, at 2,368.46.

NYMEX-NEW YORK, March 11 (Reuters) - U.S. crude oil futures ended little changed on Thursday, taking a pause under an eight-week high reached on Wednesday, amid mixed U.S. economic data and uncertainty about China's monetary outlook.

NYMEX crude futures turned in an inside day -- when the session's high and low are within the previous day's range.

On the New York Mercantile Exchange, April crude settled up 2 cents, or 0.02 percent, at $82.11 a barrel, trading from $81.33 to $82.32.

CBOT - CHICAGO, March 11 (Reuters) - Chicago Board of Trade grains and soy complex close on Thursday.

CBOT-SOYBEANS - May down 27-1/2 cents at $9.30-1/2. Pressure from bearish USDA export sales data in Thursday's weekly report. Further pressure from early harvest of likely record large South American soy crop. Concerns about prospects for inflation in China, which might trim China's imports, also weigh.

CBOT-SOYOIL - May down 0.91 cent 40.11 cents per lb. Profit-taking, lower soy and weak crude oil combine to weigh on soyoil futures in addition to a slowdown in U.S. export sales. Some underlying support from news late on Wednesday the U.S. Senate passed a jobs bill that includes a $1 a gallon tax credit incentive for biodiesel.

FCPO-JAKARTA, March 11 (Reuters) - Malaysian palm oil futures ended lower on Thursday, with selling triggered by a bearish crude oil and soyoil market, traders said.

The benchmark May crude palm oil futures on the Bursa Malaysia Derivatives Exchange ended down 0.93 percent, or 25 ringgit, at 2,660 ringgit a tonne.

REGIONAL EQUITIES-COLOMBO, March 11 (Reuters) - Most Southeast Asian stock markets rose on Thursday, with Singapore climbing to a seven-week high, led by banking shares, and Thailand rising for a second day despite political worries ahead of a big anti-government rally.

Indonesia and the Philippines gained, but Malaysia and Vietnam bucked the trend, closing in the red.

Singapore <.FTSTI> gained 0.4 percent to its highest since Jan. 21, with top lender DBS Group gaining 0.6 percent and United Overseas Bank rising 1.9 percent.

In Kuala Lumpur, the index <.KLSE> fell 0.5 percent after hitting its highest since March 2008 the previous session, led by a 1.7 percent fall in CIMB Group and a drop of 1.4 percent in Sime Darby .

FCPO Daily: Potential of double top formation

Market failed to challenge the recent high at 2726 levels and chart in a potential of double top formation. Thus, market may enter into correction mode in near term with upside resistance remains pegged at 2722-2726. While, downside support is pegged at 2640-2620 followed by 2600-2580.

FKLI Daily: Bulls took a little breathe

Bulls took a little breathe after the recent sharp rise. Nevertheless, immediate daily technical landscape remains in positive outlook despite prices close lower with a long black candle. Market looks may extend its uptrend move in near term with upside projection is pegged at left over gap at 1337-1348 levels. To the downside, support is lies at 1311-1305 (gap left over on 8/3/2010).