Trader's Highlight

DJI-NEW YORK, Nov 2 (Reuters) - U.S. stocks rose on Tuesday on the expectation the midterm election and a Federal Reserve decision would create a more business-friendly environment, though many traders forecast a selloff in the days ahead.

The S&P 500 index has risen almost 14 percent since September on speculation of Republican congressional gains and new measures by the Federal Reserve to stimulate the economy.

The Dow Jones industrial average <.DJI> was up 64.10 points, or 0.58 percent, at 11,188.72. The Standard & Poor's 500 Index <.SPX> was up 9.19 points, or 0.78 percent, at 1,193.57. The Nasdaq Composite Index <.IXIC> was up 28.68 points, or 1.14 percent, at 2,533.52.

NYMEX-NEW YORK, Nov 2 (Reuters) - U.S. crude oil futures ended higher on Tuesday, hitting the highest level in six months, as the dollar fell ahead of an expected action by the Federal Reserve to inject more money into the flagging economy.

Qatar said oil prices in the $70-$90 range would be reasonable, echoing similar comments from Saudi Arabia on Monday, and that also helped push crude prices higher.

On the New York Mercantile Exchange, December crude settled up 95 cents, or 1.15 percent, at $83.90 a barrel, the highest close since May 3, when front-month crude finished at $86.19. December crude, which rose for a second day in a row, traded from $82.83 to $84.34.

CBOT-CHICAGO, Nov 2 (Reuters) - Chicago Board of Trade grain and soy complex close on Tuesday.

CBOT-SOYBEANS - November down 1-1/2 cents at $12.23-3/4 per bushel; January down 1 at $12.34. Market pressured by technical selling and forecasts for better crop weather in South American soy regions. Prices underpinned by weak dollar and firm crude oil.

CBOT-SOYOIL - December down 0.12 cent at 49.63 cents per lb. Following soybeans lower.

FCPO-KUALA LUMPUR, Nov 2 (Reuters) - Malaysian palm oil futures eased from a 27-month high on Tuesday on some profit-taking although concerns over a strong monsoon season hitting yields lingered.

A weaker U.S. dollar against a basket of currencies limited losses in palm oil that is priced in the greenback, making the commodity cheaper. Higher U.S. crude oil also lent support for palm oil and other vegetable oil prices.

Malaysian palm oil prices are starting to pick up, gaining 16 percent so far this year compared with U.S. soyoil's 23 percent rise and China's soyoil 19 percent gain because of a weaker dollar and, now, weather concerns.

January 2011 crude palm oil futures on the Bursa Malaysia Derivatives Exchange rose as much as 1 percent to 3,106 Malaysian ringgit ($1,004) per tonne -- a level unseen since July 28, 2008.

But the contract gave up gains to settle 2 ringgit lower at 3,090 ringgit per tonne. Overall traded volume stood at 12,719 lots of 25 tonnes.

REGIONAL EQUITIES-COLOMBO, Nov 2 (Reuters) - The Philippine stock market hit a record high on Tuesday, helped by foreign buying, but most other Southeast Asian markets fell as cautious investors stayed on the sidelines ahead of a Fed decision on quantitative easing measures.

Net foreign inflows of $8.6 million helped take the Philippine index to a record close of 4,341.74, surpassing its previous high from Oct. 26.

However, other markets in the region ended mixed as investors were wary of the size and the impact of the QE measure, which will be decided when a Federal Reserve meeting ends on Wednesday.

Indonesia <.JKSE> fell 0.5 percent, Malaysia <.KLSE> edged down 0.2 percent, and Vietnam ended 1.1 percent weaker.

Bucking the trend, Singapore <.FTSTI> rose 0.4 percent and Thailand edged up 0.2 percent, hitting another 14-year high, despite a net outflow of foreign funds worth $25.2 million.

In Singapore, palm oil firm Wilmar International gained 2.2 percent, while second-biggest lender Oversea-Chinese Banking Corp rose 0.9 percent.