Trader's Highlight

DJI-NEW YORK, Dec 28 (Reuters) - Global stocks edged higher on Tuesday on expectations the U.S. economy is on track for recovery while oil prices edged close to a 26-month high as winter weather drove demand.

The dollar hit a record low against the Swiss franc and tumbled against the yen after Japan reported its factory output rose in November for the first time in six months.

U.S. Treasury prices fell after a weak $35 billion auction of five-year notes and ahead of an auction of seven-year notes on Wednesday.

Trading volumes in all markets were light due to the post-Christmas holiday and as the northeastern United States dug out from a blizzard that disrupted travel.

The Dow Jones industrial average <.DJI> closed up 20.51 points, or 0.18 percent, at 11,575.54. The Standard & Poor's 500 Index <.SPX> was up 0.98 points, or 0.08 percent, at 1,258.52. The Nasdaq Composite Index <.IXIC> was down 4.39 points, or 0.16 percent, at 2,662.88.

NYMEX-HOUSTON, Dec 28 (Reuters) - U.S. crude oil futures prices ended higher on Tuesday after a choppy trading session, supported by expectations that crude oil stockpiles fell last week and shrugging off a stronger dollar.

Analysts were encouraged by another settlement above $90 a barrel even though crude was unable move above the intraday 26-month peak reached during Monday's session.

On the New York Mercantile Exchange, February crude rose 49 cents, or 0.54 percent, to settle at $91.49 a barrel, trading from $90.75 to $91.67.

CBOT-CHICAGO, Dec 28 (Reuters) - Chicago Board of Trade grain and soy complex closing trends on Tuesday.

CBOT-SOYBEANS - January up 2-3/4 cents at $13.75-3/4 per bushel. Heat and dry weather in Argentina supported soybean prices, with temperatures through Wednesday reaching 93-102 degrees Fahrenheit (34-39 C, well above normal) in Cordoba, Santa Fe and northwestern Buenos Aires - Telvent DTN.

CBOT-SOYOIL - January down 0.33 cent at 56.82 cents per lb. Market weighed down by soymeal/soyoil spreading.

FCPO-KUALA LUMPUR, Dec 28 (Reuters) - Malaysian crude palm oil futures rose to fresh 33-month highs on Tuesday, driven by prospects of erratic weather sapping vegetable oil supplies at a time when demand remains resilient.

Heavy rains due to the monsoon season normally hamper the harvesting of palm fruits and make transportation to refineries difficult in the world's leading palm oil producers, Malaysia and Indonesia.

Dry weather in soy-producing Argentina has slowed plantings and could prevent soy crops from developing normally.

The benchmark March 2011 crude palm oil contract rose 0.6 percent to 3,778 ringgit ($1,220.679) per tonne after hitting an intraday high of 3,792 ringgit -- a level unseen since March 2008.

Overall traded volumes were 10,730 lots of 25 tonnes each, slightly above the usual 10,000 lots.

REGIONAL EQUITIES-BANGKOK, Dec 28 (Reuters) - Most Southeast Asian stock markets rose in holiday-thinned trade on Tuesday, with Indonesia climbing to two-week highs amid rising appetite for commodity stocks, seen as an inflation hedge.

Trading volume was less than half of average in Indonesia and Thailand as many investors were reluctant to take new positions ahead of the long New Year holiday.

Singapore's Straits Times Index <.FTSTI> gained 0.8 percent to a two-week high of 3,183.70. Singapore-based Najeeb Jarhom, head of research at AmFraser Securities, forecast a 2011 range of 2,900-3,000 to 3,500-3,600.

Malaysia's Kuala Lumpur Composite Index <.KLSE> rose 0.4 percent, erasing part of an early gain to seven-week highs, and Vietnam's main stock index <.VNI> rose 1.3 percent.

Asian markets in general were flat, with shares in Japan and China easing as concern that further Chinese monetary tightening would cool the engine of world economic growth overshadowed Japanese data that pointed to improving demand.