Trader's Highlight

DJI-NEW YORK, June 29 (Reuters) - Investors fled the U.S. stock market on Tuesday and the S&P 500 tumbled to its lowest level in eight months in a sell-off triggered by a wave of increasing alarm over the global economic outlook.

All but one stock in the S&P 500 ended lower as escalating doubts about the stability of Europe's banks roiled markets once again.

The S&P 500 had tumbled below its 2010 intraday low of 1,040.78 during the session, which analysts said could ignite further declines. The index closed at its lowest level since Oct. 30, breaking its closing low for the year at 1,050.47 -- another bearish signal for markets.

The Dow Jones industrial average <.DJI> lost 268.22 points, or 2.65 percent, to 9,870.30. The Standard & Poor's 500 Index <.SPX> fell 33.33 points, or 3.10 percent, to 1,041.24. The Nasdaq Composite Index <.IXIC> dropped 85.47 points, or 3.85 percent, to 2,135.18.

NYMEX-NEW YORK, June 29 (Reuters) - U.S. crude oil futures ended nearly 3 percent lower on Tuesday, down for a second day in a row, as economic worries sparked risk aversion and with storm worries fading as Tropical Storm Alex's path was seen averting production lanes in the Gulf of Mexico.

A sharp drop in U.S. consumer confidence, fresh concerns about economic growth in China and renewed euro zone debt issues were behind the day's economic jitters, analysts said.

On the New York Mercantile Exchange, crude for August delivery settled $2.31 lower, or 2.95 percent, at $75.94, after trading from $75.21 to $78.

CBOT-CHICAGO, June 29 (Reuters) - Chicago Board of Trade grain and soy complex close on Tuesday.

CBOT-SOYBEANS - July down 7-3/4 cents per bushel at $9.47-1/4. New-crop November down 6-1/2 at $9.12. Pressure from good U.S. crop weather, a strong dollar as equities and crude oil falter. Underpinned by news China bought more U.S. soy, slow farmer selling and tight cash markets.

CBOT-SOYOIL - July down 1.01 cents per lb at 35.93 cents per lb. Pressured by falling crude oil and equities as the dollar rallies.

FCPO-KUALA LUMPUR, June 29 (Reuters) - Malaysian crude palm oil futures slid to 7-month lows on Tuesday, as sentiment was hurt by a global selloff in stocks and commodities.

World stocks hit a 2-½ week low on Tuesday while oil and the euro also slipped as investors grew nervous over the funding situation of banks about to repay 442 billion euros ($545.5 billion) to the European Central Bank.

The benchmark September crude palm oil contract on Bursa Malaysia Derivatives Exchange lost 1.4 percent or 34 ringgit at 2,366 ringgit ($734.3) after slipping to as low as 2,362 ringgit earlier the session -- a level unseen since November 20 last year.

Volatility lifted volume to 15,008 lots of 25 tonnes each, compared to the usual 10,000 lots. It had slipped to 8,026 lots on Monday.

REGIONAL EQUITIES-BANGKOK, June 29 (Reuters) - Major Southeast Asian stock markets fell on Tuesday, wary of weakness in China's stock markets, and broad selling in financials and heavyweight shares pulled indexes down to their lowest in around two weeks.

Markets in the region suffered late selling after Shanghai shares <.SSEC> slid over 4percent as investors sold stock to make room for Agricultural Bank of China's[ABC.UL] initial public offering, dealers said.

Banking stocks were among the weak points in Singapore <.FTSTI>, Malaysia <.KLSE> and Thailand <.SETI>, each of which is poised to have its worst quarterly performance since the first quarter of 2009.

Singapore's United Overseas Bank and Thailand's Krung Thai Bank each fell 2.3 percent. Malaysian financial firm RHB Capital fell 1.4 percent and AMMB Holdings eased 0.2 percent.

Lee Cheng Hooi, head of research for equity markets at Maybank IB in Kuala Lumpur, said the trend in China hurt Malaysia, partly because it was a key export market.