Thursday, June 30, 2011

Trader's Highlight

DJI-NEW YORK, June 29 (Reuters) - Wall Street closed its best three-day run in three months on Wednesday after the Greek parliament approved austerity measures to avoid defaulting on its debt.

Optimism about the plan's approval has helped the stock market recoup some of its losses of the last two months. The CBOE Volatility Index .VIX, Wall Street's "fear gauge," fell 9.9 percent to 17.27, its third straight decline.

The Dow Jones industrial average .DJI gained 72.73 points, or 0.60 percent, to 12,261.42. The Standard & Poor's 500 Index .SPX rose 10.74 points, or 0.83 percent, to 1,307.41. The Nasdaq Composite Index .IXIC added 11.18 points, or 0.41 percent, to 2,740.49.

NYMEX-NEW YORK, June 29 (Reuters) - U.S. crude futures ended higher on Wednesday as data showed a sharp weekly drawdown in crude stocks and as the dollar stayed weak after the Greek parliament passed an austerity plan.

Crude prices surged more than $2 after a U.S. Energy Information Administration report said crude stocks dived 4.4 million barrels last week, more than double the draw that analysts had forecast.

On the New York Mercantile Exchange, August crude CLQ1, rose $1.88, or 2.02 percent, to settle at $94.77 a barrel, trading from $92.66 to $95.84.

CBOT-SOYBEANS-Chicago Board of Trade soybean futures closed mostly firm as traders adjusted positions ahead of key government crop reports due out on Thursday, traders said.

Soybeans drew support from a broad rally in commodities tied to global economic optimism following the approval of a Greek austerity plan.

But trade was choppy, with soy contracts dipping lower at times in technical action ahead of USDA's acreage and quarterly stocks reports on Thursday.

FCPO-KUALA LUMPUR, Jun 29 (Reuters) - Malaysian palm oil futures rose 1.5 percent on Wednesday as traders continued to adjust their positions and eye strong export data after the market fell to an eight-month low earlier this week.

The benchmark September crude palm oil contract KPoc3 on Bursa Malaysia Derivatives rose 46 ringgit to 3,109 ringgit ($1,020) per tonne. Overall traded volume was light at 14,821 lots of 25 tonnes each, below the usual 25,000 lots.

One trader said Malaysian exports in June could hit 1.4 million tonnes. Cargo surveyors Intertek Testing Services and Societe Generale de Surveillance will issue their estimates on Thursday.

The figure is lower than the market expectations of 1.5 million tonnes but represents a growth from May exports that ranged from 1.32 million to 1.35 million tonnes.

REGIONAL EQUITIES-BANGKOK, June 29 (Reuters) - Southeast Asian stock markets climbed on Wednesday as investors piled into financial stocks towards the end of the quarter and sentiment was buoyed by optimism that a Greek austerity plan would go ahead and a sovereign debt default would be averted.

Late buying boosted trading volume in the region to the 30-day average, pushing Singapore .FTSTI up 1 percent to the highest in almost three weeks and Malaysia .KLSE up 0.3 percent to five-month highs.

Thai shares .SETI surged 2 percent to two-week highs and Vietnam .VNI rose 0.5 percent. But Philippine shares .PSI fell 1 percent, led by a 3 percent drop in Philippine Long Distance Telephone TEL.PS amid foreign ownership concerns. Indonesia was shut for a market holiday and trading will resume on Thursday.

Indonesia and Malaysia, Southeast Asia's best performers so far in 2011, are close to their all-time highs set earlier in the year.

That performance has been helped by foreign inflows. A Kuala Lumpur trader said buying interest in laggard sectors such as construction, consumer goods and plantation stocks could push Malaysia up higher.

Wednesday, June 29, 2011

Breaking News-RTRS - Low prices to raise palm oil demand - Oil World

HAMBURG, June 28 (Reuters) - Low palm oil prices compared to other vegetable oils are starting to raise global import demand with India likely to become a major buyer, Hamburg-based oilseeds analysts Oil World said on Tuesday.
Islamic countries traditionally increase edible oil imports ahead of the Ramadan fasting month, which this year is scheduled to start around Aug. 1.
Prices for Malaysian refined, bleached and deodorised (RBD) palm oil are now about $100 below fob prices for Argentine soyoil and $200 below sunoil prices, Oil World data shows.

Trader's Highlight

DJI-NEW YORK, June 28 (Reuters) - U.S. stocks rose for a second day on Tuesday on optimism that a solution to Greece's debt crisis was near, although low volume indicated underlying nervousness in the market.

Buyers snapped up shares after the S&P 500's 7 percent swoon since April, mostly in commodities and technology shares, as investors raised their exposure heading into quarter-end and before earnings season in July.

The Dow Jones industrial average .DJI gained 145.13 points, or 1.21 percent, to 12,188.69. The Standard & Poor's 500 Index .SPX rose 16.57 points, or 1.29 percent, to 1,296.67. The Nasdaq Composite Index .IXIC added 41.03 points, or 1.53 percent, to 2,729.31.

NYMEX-NEW YORK, June 28 (Reuters) - U.S. crude futures rebounded on Tuesday to post the biggest one-day percentage gain in almost six weeks on optimism that Greece would move to resolve its debt crisis and a weaker dollar.

Investors shrugged off mixed economic data for the day, which showed consumer sentiment flagged in June on worries about jobs and income while the plunge in home prices showed signs of leveling off.

On the New York Mercantile Exchange, crude for August delivery CLQ1 settled at $92.89a barrel, gaining $2.28, or 2.52 percent, the biggest percentage rise since May 18, when prices ended up 3.3 percent. It traded $90.44 to $92.96.

CBOT-SOYBEANS-Soybean futures on the Chicago Board of Trade settled firm on Tuesday but well below the day's highs as declines in soymeal amid softening cash markets pared gains in soybeans, traders said.

Spillover strength from the corn and wheat markets, as well as crude oil,underpinned the market.

REGIONAL EQUITIES-BANGKOK, June 28 (Reuters) - Southeast Asian stock posted limited gains on Tuesday as relief over an outline French bank agreement on Greek debt helped revive sentiment and investors bought sectors seen as beneficiaries of domestic consumption, like banking stocks.

The mild market rebound came amid light volume, with average market turnover in the region falling to 0.8 times the 30-day average.

Late selling pulled the main Philippine index .PSI off four-week highs to end nearly flat and the Singapore index .FTSTI finished a tad higher, erasing early gains, with Malaysia .KLSE, Thailand .SETI and Indonesia .JKSE eking out small gains.

For all the volatility, Malaysia and Indonesia were among markets squeezing out gains in the first half, in part buoyed by demand for the consumer sector.
T
he MSCI index of Malaysia .MIMY00000PMY had risen 3.1 percent so far this year and the MSCI index of Indonesia .MIID00000PID had gained 3.6 percent, against a 2.8 percent loss for Asian stocks outside Japan.

Indonesia gained a mild $7.2 million in inflows on Tuesday, outpacing $12 million worth of outflows of the Philippines, according to Thomson Reuters data.

Thursday, June 23, 2011

Trader's Highlight

DJI-NEW YORK, June 22 (Reuters) - U.S. stocks dropped on Wednesday after the Federal Reserve cut its forecasts for U.S. economic growth this year and next, without hinting at further plans for stimulus.

Investors hoping for positive comments from Fed Chairman Ben Bernanke were disappointed, and that gave them a reason to sell after a four-day rally that had lifted stocks from three-month lows.

The Dow Jones industrial average .DJI slid 80.34 points, or 0.66 percent, to end at 12,109.67. The Standard & Poor's 500 Index .SPX fell 8.38 points, or 0.65 percent, to 1,287.14. The Nasdaq Composite Index .IXIC lost 18.07 points, or 0.67 percent, to close at 2,669.19.

NYMEX-NEW YORK, June 22 (Reuters) - U.S. crude futures ended more than 1 percent higher on Wednesday on lift from falling inventories in the United States and after the Federal Reserve left interest rates low, fueling expectations intraday for more dollar weakness.

The Federal Reserve cut its forecasts for U.S. economic growth. The central bank left interest rates unchanged and said it will leave them exceptionally low for an extended period, but offered no hint of further monetary support, saying growth should pick up soon.

On the New York Mercantile Exchange, August crude CLQ1, rose $1.24, or 1.32 percent, to settle at $95.41 a barrel, having traded from $93.24 to $95.70.

CBOT-SOYBEANS-U.S. soybean futures on the Chicago Board of Trade fell to a one-month on fund long liquidation and spillover pressure from steep declines in CBOT corn and wheat, traders said.

Spot soybeans fell to a one-month low, setting back after a two-day rally. CBOT corn fell more than 4 percent and hit a six-week low, while CBOT wheat hit a seven-month low on ideas that suppliers in the Black Sea region were returning to the world export market.

FCPO-JAKARTA, June 22 (Reuters) - Malaysian palm oil futures fell 1.3 percent on Wednesday, as the imminent onset of a higher production cycle offset an anticipated short-term demand uptick.

The benchmark September crude palm oil contract KPOc3 on the Bursa Malaysia Derivatives Exchange ended at 3,178 Malaysian ringgit ($1,049) a tonne, its low for the day.

Market players are expecting production to rise in the second half of 2011 in Southeast Asian producing countries, which account for more than 90 percent of global output.

Last week, benchmark prices touched their lowest level since May 6, at 3,163 ringgit, as stock levels grow.

Stocks in Malaysia are expected to rise above a 16-month high of 1.92 million tonnes hit last month. While this could draw in more demand, production levels are key.

On Monday, data showed that exports of Malaysian palm oil products for June 1-20 rose 22 percent to 969,804 tonnes from 794,322 tonnes shipped during May 1-20. PALM/ITS

Traded volume for the September contract was 15,700 lots of 25 tonnes each. Palm oil prices in the coming year might fall about 9 percent from their average in the last 12 months as global palm output is expected to rise sharply, Hamburg-based oilseeds analysts Oil World said late on Tuesday.

REGIONAL EQUITIES-BANGKOK, June 22 (Reuters) - Some Southeast Asian stock markets retreated on Wednesday in cautious trade ahead of a U.S. Federal Reserve meeting and resource shares pulled back due to volatility in global oil prices.

The markets climbed to multi-week highs at one point, albeit in relatively light volume, amid hopes that Greece would avoid a debt default, which lured bargain-hunters back to beaten-down emerging equities.

However, stocks in Singapore .FTSTI, Thailand .SETI and Vietnam .VNI erased early gains and they posted small losses on the day. Philippine shares .PSI rose 0.8 percent, building on a 1.4 percent rise the previous session.

Malaysia .KLSE ended up 0.4 percent in a choppy session while Indonesia's main share index .JKSE rose 0.7 percent to around two-week highs.

Wednesday, June 22, 2011

Trader's Highlight

DJI-NEW YORK, June 21 (Reuters) - U.S. stocks posted gains for the fourth day on Tuesday on growing hopes that Greece will avoid a debt default, adding momentum to the market's recent rebound.

The Nasdaq had its biggest percentage gain since October, while the S&P 500 marked its best day in two months in what investors believe could be continued short-term buying from deeply oversold levels.

The Nasdaq reclaimed positive territory for the year and led the market's advance, boosted by a jump in semiconductor stocks. A semiconductor index .SOX shot up 2.5 percent, its best gain since April.

The Dow Jones industrial average .DJI rose 109.63 points, or 0.91 percent, to 12,190.01 at the close. The Standard & Poor's 500 Index .SPX gained 17.16 points, or 1.34 percent, to 1,295.52. The Nasdaq Composite Index .IXIC climbed 57.60 points, or 2.19 percent, to 2,687.26.

NYMEX-NEW YORK, June 21 (Reuters) - U.S. crude futures edged up on Tuesday, as the euro rose against the dollar on hopes the Greek government would survive a confidence vote and help the country avoid defaulting on its sovereign debt.

Forecasts that U.S. crude stocks fell last week, ahead of inventory reports, were also supportive, analysts said.

On the New York Mercantile Exchange, July crude CLN1 expired and settled at $93.40 a barrel, gaining 14 cents, or 0.15 percent, trading $92.50 to $94.74.

CBOT-SOYBEANS-U.S. soybean futures on the Chicago Board of Trade closed higher for a second day, lifted by weakness in the dollar and short-covering following recent declines, traders said.

U.S. dollar index fell as the euro rose ahead of a confidence vote in Greece aimed at avoiding a messy default of its sovereign debt. USD/ A weak dollar makes grains and other dollar-denominated goods more competitive on the world market and tends to promote buying by investors seeking a hedge against inflation.

Soybeans also drew spillover strength from the corn market, which rose on bargain buying after falling to a one-month low last week.

FCPO-JAKARTA, June 21 (Reuters) - Malaysian palm oil futures extended earlier gains to close almost 1 percent higher on Tuesday, as firmer comparative oils and improving short-term demand expectations supported prices.

The benchmark September crude palm oil contract KPOc3 on the Bursa Malaysia Derivatives Exchange ended 0.9 percent higher at 3,221 Malaysian ringgit ($1,058) a tonne, after hitting an earlier high at 3,230 ringgit.

Traders said that in the short-term, the approaching Muslim festival of Ramadan in August is likely to result in an uptick in demand from July onwards.

REGIONAL EQUITIES-BANGKOK, June 21 (Reuters) - Southeast Asian stock markets gained on Tuesday as hopes for a solution to Greece's debt problems buoyed sentiment across Asia, while a rebound in global crude prices lifted resource shares.

The markets in Singapore .FTSTI and Indonesia .JKSE climbed more than 1 percent, on top of a small rise on Monday. Thai stocks .SETI jumped 1.4 percent, ending a four-day fall.

Malaysia .KLSE inched up 0.1 percent, Philippine shares .PSI added 1.4 percent and Vietnam .VNI jumped 2.6 percent.

The region's gains were supported by flows of foreign funds into most markets, led by $97 million for Malaysia, on top of $303 million in the past seven sessions.

Singaporean property developers CapitaLand CATL.SI and Keppel Land KLAN.SI outperformed as some investors saw value in their stock prices after a steep sell-down last week. CapitaLand rose 3.3 percent and Keppel jumped 4.6 percent

Tuesday, June 21, 2011

Trader's Highlight

DJI-NEW YORK, June 20 (Reuters) - U.S. stocks rose on Monday, as the latest development to reduce Greece's debt helped draw buyers and the S&P 500 touched a key support level, but anemic volume signalled the recent weakness may not be over.

Stocks erased early losses as the S&P 500 dipped toward 1,259.78, its 200-day moving average, which is often viewed as a pivotal point in determining the market's direction. A drop below that level would be the first since September 2010.

The Dow Jones industrial average .DJI climbed 76.02 points, or 0.63 percent, to end at 12,080.38. The Standard & Poor's 500 Index .SPX rose 6.86 points, or 0.54 percent, to 1,278.36. The Nasdaq Composite Index .IXIC gained 13.18 points, or 0.50 percent, to 2,629.66 at the close.

NYMEX-NEW YORK, June 20 (Reuters) - U.S. crude futures edged up on Monday, lifted by WTI/Brent spread trade ahead of the NYMEX July crude contract's expiration on Tuesday, traders said.

A late bounce on Wall Street was also supportive but continued uncertainty on how the Greek debt crisis could be resolved kept investors nervous, they added.

Greece's problems pressured the euro as European finance ministers failed to give clarity on Greece's outlook as they delayed a decision on the next tranche of financial aid.

On the New York Mercantile Exchange, July crude CLN1, which expires on Tuesday, settled at $93.26 a barrel, up 25 cents, trading between $91.14 and $93.49.

CBOT-SOYBEANS-U.S. soybean futures on the Chicago Board of Trade closed higher on a short-covering bounce after the market fell in six of the previous seven sessions, traders said.

Talk of firm cash markets in Brazil tied to recent sales of Brazilian soy to China added support.

USDA's weekly crop progress report late Monday afternoon was expected to show a slight improvement in U.S. corn and soybean ratings as hot weather in key growing areas of the Midwest helped aid crop development - trade.

FCPO-JAKARTA, June 20 (Reuters) - Malaysian palm oil futures ended flat on Monday, after dropping to a five-week low in the previous session, as falling crude and an uncertain supply and demand outlook offset positive export numbers from No.2 producer Malaysia.

The benchmark September crude palm oil contract KPOc3 on the Bursa Malaysia Derivatives Exchange closed nearly 0.2 percent lower at 3,193 Malaysian ringgit ($1,051) a tonne, after hitting an earlier high at 3,221 ringgit.

Exports of Malaysian palm oil products for June 1-20 rose 22 percent to 969,804 tonnes from 794,322 tonnes shipped during May 1-20, cargo surveyor Intertek Testing Services said.

Palm olein's discount to competing soyoil has widened at a time when China and India are restocking. Muslim countries are also in the market to buy extra supplies ahead of Ramadan in August, when vegetable oil consumption rises as fasting in the day is followed by feasts and dinner gatherings at night.

Traded volume for the September contract closed at 13,236 lots of 25 tonnes each, versus a total at 18,364 lots on Friday.

On Friday, benchmark prices touched its lowest level since May 6 at 3,163 ringgit, due in part to growing stock levels.

Stocks in Malaysia are expected to rise above a 16-month high of 1.92 million tonnes hit last month. While this could draw in more demand, the country is going through a high production period.

REGIONAL EQUITIES-BANGKOK, June 20 (Reuters) - Most Southeast Asian stock markets remained depressed on Monday as a delay in a final decision on extending emergency loans to Greece ate into risk appetite and a fall in crude prices triggered selling in resource stocks.

The markets traded in a fairly narrow range, most still seeing weak volume, as last week, with turnover in the Thai .SETI and Indonesian .JKSE bourses half the 30-day average.

Thailand's SET Index fell 0.6 percent, extending losses into a fourth session, while Vietnam .VNI dropped 1.7 percent to the lowest in almost two weeks and Malaysia .KLSE edged down 0.3 percent, with the selling led by local investors.

Late bargain-hunting helped reverse early losses in Singapore .FTSTI and Indonesia .JKSE, which ended up 0.28 percent and 0.18 percent respectively. The trend in the region would remain weak, brokers said.

Monday, June 20, 2011

Trader's Highlight

DJI-NEW YORK, June 17 (Reuters) - The Dow and S&P 500 rose on Friday after France and Germany outlined an agreement to aid debt-burdened Greece, but analysts said a recent bearish trend may not be over.

The Dow managed to close just above 12,000, but the S&P 500 barely squeaked out a gain for the week after six straight weeks of losses. The uncertainty surrounding a resolution of the debt crisis kept investors wary of committing more cash to equities.

Research In Motion Ltd's RIMM.O U.S.-listed shares sank 21.5 percent to $27.75 in its busiest day of trading in almost six years. The BlackBerry maker's sour results, released late Thursday, pushed the Nasdaq lower and dragged on other top technology names such as Apple Inc AAPL.O, down 1.5 percent at $320.26.

The Dow Jones industrial average .DJI rose 42.84 points, or 0.36 percent, to end at 12,004.36. The Standard & Poor's 500 Index .SPX gained 3.86 points, or 0.30 percent, to 1,271.50. But the Nasdaq Composite Index .IXIC fell 7.22 points, or 0.28 percent, to 2,616.48.

NYMEX-NEW YORK, June 17 (Reuters) - U.S. crude futures fell more than 2 percent on Friday as continuing worries about Greece's debt woes and U.S. slower economic growth pressured oil prices.

Crude prices dropped 6.3 percent for the week, the biggest losing week since the commodities-wide sell-off in early May.

On the New York Mercantile Exchange, July crude CLN1 fell $1.94, or 2.04 percent, to settle at $93.01 a barrel, the lowest settlement since the Feb. 18 close at $86.20. Friday's intraday high was $95.40 and the $91.84 was below front-month crude's 200-day moving average of $92.22.

CBOT-SOYBEANS-Chicago Board of Trade soybean futures fell on fund long-liquidation, improved U.S. crop weather, falling crude oil and slow U.S. soy exports.Soybeans dropped despite a downturn in the dollar on Friday.

Some funds were exiting the markets due to concerns about the Greek debt crisis and a slowing U.S. economic recovery.

FCPO-KUALA LUMPUR, June 17 (Reuters) - Malaysian palm oil futures dropped to more than five-week lows on Thursday, before ending slightly higher in choppy trade as weaker external markets and growing stocks weighed on the market.

Stocks in Malaysia, the world's No.2 producer, are expected to rise above a 16-month high of 1.92 million tonnes hit last month. While this could draw in more demand, the country is going through a high production period.

The benchmark September crude palm oil contract KPOc3 on the Bursa Malaysia Derivatives Exchange lost as much as 0.9 percent to 3,163 ringgit ($1,045) a tonne, the lowest level seen since May 6. The market ended a tad higher at 3,198 ringgit.

Overall traded volume stood at 31,798 lots of 25 tonnes each, higher than the usual 25,000 lots.

REGIONAL EQUITIES-BANGKOK, June 17 (Reuters) - Most Southeast Asian stock markets fell on Friday as regional big-caps came under selling pressure because of worries about Greece's debt crisis, while a fall in crude oil pulled resource shares lower.

Stocks in Singapore .FTSTI and Indonesia .JKSE slipped to multi-month lows. Others drifted lower in range trading, with Thai stocks .SETI posting the weakest turnover of 0.7 times the 30-day average, with political concerns deterring investors.

Singapore posted its second straight weekly loss, falling 2.4 percent, Southeast Asia's worst performer.

The Straits Times Index lost 0.5 percent on the day and briefly breached the 3,000 level because of the euro zone crisis and U.S. economic slowdown, said Najeeb Jarhom, head of research at broker AmFraser Securities.
Bucking the trend, Malaysia .KLSE gained 0.6 percent to its highest level in more than two weeks. Malaysia racked up $227 million of inflows on the week, reversing a $26.8 million outflow the previous week, exchange data showed.

Dealers attributed growing demand for Malaysia to increased government spending, which could drive the domestic economy. Banks led gainers on Friday, with leader Maybank MBBM.KL surging 3 percent.

Friday, June 17, 2011

Trader's Highlight

DJI-NEW YORK, June 16 (Reuters) - U.S. stocks rose in volatile trading on Thursday, thanks only to technical factors and options expirations. But raging uncertainty about Greece prevented investors from committing money to the market.

The impending expiration of stock-index futures, single-stock futures, equity options and stock-index options for June -- known as quadruple witching -- created exceptional volatility, pushing the S&P 500 to swing more than 1 percent from its session low to its intraday high.

Greece kept a pall over investor sentiment, even though experts say U.S. banks' exposure to Greek debt may be smaller than many market participants fear.

The Dow Jones industrial average .DJI gained 64.25 points, or 0.54 percent, to 11,961.52. The Standard & Poor's 500 Index .SPX added 2.22 points, or 0.18 percent, to 1,267.64. But the Nasdaq Composite Index .IXIC dropped 7.76 points, or 0.29 percent, to 2,623.70.

NYMEX-NEW YORK, June 16 (Reuters) - U.S. crude futures rebounded on Thursday, buoyed by a forecast of higher demand from the International Energy Administration and better readings of the U.S. labor and housing markets.

Gains were limited by a Federal Reserve report that mid-Atlantic factory activity fell to a near two-year low, which added to recent signals of a slowing economic recovery.

On the New York Mercantile Exchange, July crude CLN1 settled up 14 cents, or 0.15 percent, at $94.95 a barrel, trading from $94.29 to $95.75.

CBOT-SOYBEANS-Chicago Board of Trade soybean futures ended lower on fund long-liquidation linked to better U.S. crop weather, a firm dollar and on spillover selling from falling corn futures.

Technical selling tied to a soaring dollar on mounting concern about the global economy and Greece's debt crisis.

FCPO-KUALA LUMPUR, June 16 (Reuters) - Malaysian palm oil futures dropped on Thursday as traders cut back on worries that stocks could grow beyond two million tonnes this month.

Although orders for the tropical oil have grown in response to higher output in Malaysia and a widening discount to competing soyoil, stocks are expected to rise above a 16-month high of 1.92 million tonnes hit in May.

If in the next few months Malaysian stocks rise above the record 2.3 million tonnes last seen in November 2008, palm oil prices could extend its 14 percent loss notched so far this year.

By midday, the benchmark September crude palm oil contract KPOc3 on the Bursa Malaysia Derivatives Exchange fell 0.7 percent or 22 ringgit to 3,248 ringgit ($1,071) a tonne.

Overall traded volume was a tad light with 8,502 lots of 25 tonnes each exchanged, compared to the usual 12,500 lots.

Cargo surveyor Societe Generale de Surveillance said June 1-15 Malaysian palm oil exports jumped 16.2 percent to 699,674 tonnes from a month ago.

REGIONAL EQUITIES-BANGKOK, June 16 (Reuters) - Southeast Asian stock markets fell on Thursday as faltering world economic growth took its toll on sectors with global exposure, while Singapore property developers fell after a drop in private home sales.

Worries about weak U.S. economic data and Greece's debt troubles clouded regional sentiment. Stocks in Singapore .FTSTI fell 1.1 percent to the lowest in almost three months and Indonesia .JKSE lost 1.4 percent to a two-month low.

Malaysia .KLSE, Thailand .SETI and the Philippines .PSI also ended lower but Vietnam .VNI, the region's smallest bourse, bucked the trend, rising 0.8 percent to end a three-session losing streak.

Thursday, June 16, 2011

Trader's Highlight

DJI-NEW YORK, June 15 (Reuters) - U.S. stocks tumbled on Wednesday, driven lower by escalating Greek debt woes, while troubling U.S. data pointed to further losses ahead.

Financials came under fire after Moody's Investors Service said it may cut the credit ratings of French banks, citing exposure to Greek debt. U.S. data showed the U.S. economy is facing a troubling mix of higher prices and weak growth.

The Dow Jones industrial average .DJI dropped 178.84 points, or 1.48 percent, to 11,897.27. The Standard & Poor's 500 Index .SPX lost 22.45 points, or 1.74 percent, to 1,265.42. The Nasdaq Composite Index .IXIC slid 47.26 points, or 1.76 percent, to 2,631.46.

NYMEX-NEW YORK, June 15 (Reuters) - U.S. crude futures fell more than 4 percent on Wednesday, posting its lowest settlement since Feb. 22 as weak economic data and the strong dollar weighed on oil prices.

Underlying U.S. inflation rose to its highest level in nearly three years in May, while a regional factory gauge for New York posted a surprise contraction this month, reports on Wednesday showed. [nN15281293]

The euro hit a 2-1/2-week low against the dollar, heading for its worst day in more than a month as investors fretted about the lack of resolution of Greece's debt crisis and the effect a default could have on European banks.

On the New York Mercantile Exchange, July crude CLN1 fell $4.56, or 4.59 percent, to settle at $94.81 a barrel, the lowest settlement since front-month crude closed at $93.57 on Feb. 22.

CBOT-SOYBEANS-Chicago Board of Trade soybean futures closed firm on late short-covering following the drop of prices earlier in the trading session because of a soaring dollar.

The dollar was up about 1-1/2 percent when grain futures trading closed as governments in Europe tried to deal with the Greek debt problem. The dollar also was lifted as the U.S. Consumer Price Index for May rose the most in nearly three years.

FCPO-KUALA LUMPUR, June 15 (Reuters) - Malaysian palm oil futures rose half percent on Wednesday on robust export growth although traders bet expected stronger production of overall vegetable oil supplies in the coming months could still keep stocks growing and prices weak.

Traders said palm oil may fall to 3,000 ringgit per tonne by end-June as palm stocks are likely to go above a 16-month high hit in May and as the South American soy crop streams in.

The benchmark August crude palm oil contract KPOc3 on the Bursa Malaysia Derivatives Exchange ended 15 ringgit higher to 3,268 ringgit ($1,078.370) a tonne. Overall traded volume was 20,420 lots of 25 tonnes each, lower than the usual 25,000 lots.

Exports of Malaysian palm oil products for June 1-15 rose 26 percent to 671,314 tonnes from 533,419 tonnes shipped during May 1-15, cargo surveyor Intertek Testing Services said on Wednesday.

REGIONAL EQUITIES-BANGKOK, June 15 (Reuters) - Some Southeast Asian stock markets climbed on Wednesday, with consumer sector shares extending gains as investors looked for defensive stocks against global volatility, while a rise in crude palm oil prices spurred buying in palm plantation shares.

In general, investors remained cautious about building up emerging stock market positions. Most markets reported light trading volume, with Indonesia seeing just 0.7times its 30-day average.

Bank of America Merrill Lynch was cautious on ASEAN, or Southeast Asian, equities over the next six months, saying economic growth was slowing and the end of U.S. quantitative easing could "normalise" or reverse liquidity flow into the region.

Singapore's benchmark Straits Times Index ended down 0.08 percent at 3,054.82 after a choppy session.

Technical signs pointed to a buying opportunity for Singapore, with the index testing a 3,040 support early this week, suggesting the bottom should come in the next four to six weeks, according to Najeeb Jarhom, head of research at broker AmFraser Securities in Singapore.

Palm plantation stocks rose as Malaysian palm oil futures edged up due to robust export growth. Among gainers, Singapore's Noble Group NOBG.SI rose 0.5 percent and Malaysia's IOI Corp IOIB.KL inched up 0.2 percent.

Wednesday, June 15, 2011

Trader's Highlight

DJI-NEW YORK, June 14 (Reuters) - U.S. stocks posted their biggest gains in nearly two months on Tuesday as retail sales figures allayed fears over the economy that had driven a six-week slump in the market.

Many analysts said the rally was likely a one-day wonder. Though still weak, the retail sales data was not as bad as most had expected, which provided an excuse to buy after the market had neared its most oversold conditions in a year.

The Dow Jones industrial average .DJI gained 123.14 points, or 1.03 percent, to 12,076.11. The Standard & Poor's 500 Index .SPX rose 16.04 points, or 1.26 percent, to 1,287.87. The Nasdaq Composite Index .IXIC advanced 39.03 points, or 1.48 percent, to 2,678.72.

NYMEX-NEW YORK, June 14 (Reuters) - U.S. crude oil futures extended gains in post-settlement trading on Tuesday after industry data showed that domestic crude inventories fell twice more than the forecast in a Reuters poll.

The late price surge followed a session rebound that led to a 2 percent gain at settlement, buoyed by supportive U.S. and Chinese economic data that eased some concerns about global oil demand.

The American Petroleum Institute said that for the week to June 10, crude stockpiles fell 3 million barrels, against the poll forecast of down 1.5 million barrels.API/S

On the New York Mercantile Exchange at 4:56 p.m. EDT (2056 GMT), crude for July delivery CLN1 was up $2.15, or 2.21 percent, at $99.45 a barrel, after extending the day's high to $99.54.

CBOT-SOYBEANS-Chicago Board of Trade soybean futures closed lower, pressured by better U.S. crop weather and news China was again raising its bank reserve requirement in an attempt to tame inflation.

A few showers this week may disrupt soybean plantings in the U.S. Midwest, but the moisture was seen as beneficial to sown corn and soybean crops. Overall, warmer and drier weather also seen boosting crop growth and development.

Goldman Sachs GS.N said, on Tuesday, it continues to expect higher corn and soybean prices and range-bound wheat and cotton prices as adverse weather conditions delayed U.S. planting this spring.

FCPO-KUALA LUMPUR, June 14 (Reuters) - Malaysian palm oil futures made little headway on Tuesday, with the market split between rising vegetable oil supplies and strong demand expectations.

Palm oil may come under further pressure as an improved U.S. soy crop will lead to more crushing into soyoil -- swelling global supplies at a time when palm oil stocks in Malaysia hit a 16-month high last month. [nL3E7H80Y2]

But strong demand as China restocks and Muslim countries snap up palm-based cooking oil cargoes ahead of Ramadan in August could limit losses. Traders are looking out for cargo surveyor reports on June 1-15 Malaysian palm oil exports.

The benchmark August crude palm oil contract KPOc3 on Bursa Malaysia Derivatives Exchange fell 7 ringgit to 3,253 ringgit ($1,069.54) per tonne but staying well above one month lows of 3,199 ringgit hit the previous day. Overall traded volume fell to 21,936 lots of 25 tonnes each, from the usual 25,000 lots.

REGIONAL EQUITIES-BANGKOK, June 14 (Reuters) - Some Southeast Asian stock markets edged higher on Tuesday as optimism about domestic demand lifted consumer stocks and a recovery in crude prices helped resource shares, but investors remained wary of a possible Greek debt default and the faltering U.S. economy.

Stocks in Indonesia .JKSE snapped a four-session losing streak, although turnover fell to half its 30-day average. Southeast Asia's second best performer this year gained foreign inflows of $210 million, the biggest in more than two months.

In a report on Tuesday, Morgan Stanley said it was changing its sector preference from global commodities to structural domestic plays, with a recent upgrade of Indonesian banks to attractive, and it did not now expect the Indonesian central bank to raise rates in the second half.

A combination of factors such as global commodity price softening, a slowdown in global growth momentum and a decline in Indonesian food prices had reduced the risk of a spike in inflationary pressure and further tightening in 2011, it said.

Tuesday, June 14, 2011

Trader's Highlight

DJI-NEW YORK, June 13 (Reuters) - U.S. stocks drifted sideways on Monday, in what is likely a temporary pause in a sell-off brought on by growing fears of another economic downturn.

The benchmark S&P 500 rose for only the second time in the past nine sessions while the Nasdaq 100 .NDX managed to survive a fall below its 200-day moving average at 2,218, quickly reversing those losses.

Investors remained noncommittal about whether stocks have become cheap enough after six weeks of selling to pour some money back into equities again.

The Dow Jones industrial average gained 1.06 points, or 0.01 percent, to end at11,952.97. The Standard & Poor's 500 Index added just 0.85 of a point, or 0.07percent, to 1,271.83. But the Nasdaq Composite Index dropped 4.04 points, or 0.15percent, to close at 2,639.69.

NYMEX-NEW YORK, June 13 (Reuters) - U.S. crude futures ended lower for a second session on Monday as the S&P's credit rating downgrade of Greece and signs of a cooling Chinese economy stoked concerns about a slowdown in economic growth.

Greece became the country with the lowest credit rating in the world after Standard & Poor's downgraded it by three notches, saying the agency would consider a likely debt restructuring as a default.

On the New York Mercantile Exchange, July crude CLN1 settled at $97.30 a barrel, dropping $1.99, or 2 percent, after trading from $96.13, to $99.32.

CBOT-SOYBEANS-Chicago Board of Trade soybean futures closed lower on improved U.S. planting weather, falling crude oil and on profit-taking.

Drier weather this week in the U.S. Midwest seen boosting crop plantings except in low-lying areas adjacent to rivers where flooding remains a problem. There will be some occasional shower activity that will disrupt plantings.

FCPO-KUALA LUMPUR, June 13 (Reuters) - Malaysian palm oil futures snapped five days of losses on Monday, pulling back from a more than one-month low earlier in the session on hopes for higher overseas demand, although concerns about rising stock levels weighed.

Cargo surveyor Societe Generale de Surveillance last week said exports of Malaysian palm oil products for June 1-10 rose as much as 27.2 percent to 411,852 tonnes from one month ago.

The benchmark August crude palm oil contract KPOc3 on Bursa Malaysia Derivatives Exchange rose half a percent to 3,256 ringgit ($1,077.79) per tonne, after reversing losses from 3,199 ringgit hit earlier in the day -- a level unseen since May 9.

Palm oil, which lost 5.3 percent last week, was pressured by data that showed stocks in Malaysia in May rose 15 percent from April to a 16-month high of 1.92 million tonnes. Overall traded volume was 24,692 lots of 25 tonnes each, from the usual 25,000 lots.

REGIONAL EQUITIES-BANGKOK, June 13 (Reuters) - Southeast Asian stock markets hit multi-week lows on Monday as the weak outlook for the global economy dented sentiment and foreigners continued to sell in Thailand ahead of its general election next month.

Caution about the corporate earnings outlook grew as investors assessed the impact of a global slowdown. Trading was generally subdued, with turnover in Thailand falling to 0.6 times its 30-day average, the weakest in the region.

The twin threat from the global slowdown and domestic political uncertainty lopped 0.5 percent off the benchmark Thai index .SETI on Monday, after a 3.5 percent drop last week, when it was Southeast Asia's worst performer.
Stocks in Indonesia .JKSE and the Philippines .PSI lost more than 1 percent while Singapore .FTSTI, Malaysia .KLSE and Vietnam .VNI posted smaller losses.

Singapore fell to its lowest in 11 weeks, with Indonesia at eight-week lows and the Philippines at nine-week lows.

Concern over a sputtering U.S. economic recovery, slowing growth in China and India and festering problems in the euro zone pushed the MSCI index of Asia Pacific shares outside Japan .MIAPJ0000PUS down nearly 1 percent to a 2-1/2-month low. It regained some ground and was 0.4 percent lower by 0929 GMT.

Southeast Asian stocks fared worse than broader Asia, with the MSCI index for Southeast Asia .MISU00000PUS down 1.09 percent at 0929 GMT.

Regional big-caps were among the most actively traded stocks by turnover on the day. Malaysia's top lender, Maybank MBBM.KL, lost 0.7 percent while Indonesia's main vehicle distributor and biggest listed firm, Astra International ASII.JK, dropped 1.8percent.

Monday, June 13, 2011

Trader's Highlight

DJI-NEW YORK, June 10 (Reuters) - The Dow and S&P 500 closed out their sixth week of losses on Friday as further signs of a global economic slowdown set the stage for more losses ahead.

The deepening gloom raised the prospect for the S&P, which suffered its worst week since August 2010, to break below the year's low of 1,250 next week.

The Nasdaq wiped out its yearly gains on Friday and also posted its biggest weekly decline since August 2010, as the latest deterioration in sentiment came on fear of flagging Chinese growth and fresh worries about Greece's debt crisis.

The Dow closed below 12,000 for the first time since mid-March. Reflecting the bearish sentiment, options traders eyed calls on the CBOE Volatility Index <.VIX>, Wall Street's so-called fear gauge, which moves inversely to the S&P 500's performance. The VIX rose 6.1 percent to end at 18.86.

The Dow Jones industrial average <.DJI> fell 172.45 points, or 1.42 percent, to 11,951.91. The Standard & Poor's 500 Index <.SPX> slid 18.02 points, or 1.40 percent, to 1,270.98. The Nasdaq Composite Index <.IXIC> tumbled 41.14 points, or 1.53 percent, to 2,643.73 at the close.

NYMEX-NEW YORK, June 10 (Reuters) - U.S. crude futures fell on Friday, closing lower for a second week on news that Saudi Arabia was offering more oil to Asian refiners and on a report it would jack up daily production in July.

The dollar strengthened against the euro, also pressuring crude as it prompted oil investors to shed riskier assets.

On the New York Mercantile Exchange, crude for July delivery settled at $99.29a barrel, down $2.64, or 2.59 percent, after trading between $98.60 and $102.15.

CBOT-SOYBEANS-Chicago Board of Trade soybean futures closed lower on lingering pressure from bearish soybean stocks data released by the USDA in its June supply/demand report.

End-of-week position-squaring was noted, with further weight on soy from a firm dollar and lower crude oil.

FCPO-JAKARTA, June 10 (Reuters) - Malaysian palm oil extended losses late on Friday, flirting with one-month lows on a flurry of bearish data weighed on prices.

The benchmark August crude palm oil contract on the Bursa Malaysia Derivatives Exchange fell more than 1 percent at one point to 3,231 Malaysian ringgit($1,069) a tonne.

Prices, which hit a one-month low at 3,213 ringgit on Thursday, closed at 3,239 and have shed more than 5 percent this week.

Traded volume for the benchmark month stood at 15,153 lots of 25 tonnes each, versus a two-week high at 15,813 lots on Thursday.

REGIONAL EQUITIES-COLOMBO, June 10 (Reuters) - Southeast Asian stock markets closed narrowly mixed on Friday in light volume, with foreign outflows sending all the main bourses down on the week because of worries about global economic growth, plus political concerns in Thailand.

Appetite for risk was also reduced by continued EU debt problems and although some regional markets recovered ground in thin trade on Friday, analysts say they are running out of steam due to the gloomy global outlook.

Despite a 0.4 percent bounce back on Friday, Thailand <.SETI> fell 3.5 percent on the week, its worst performance since February.

Singapore <.FTSTI> lost 0.6 percent on the day, Indonesia <.JKSE> 0.5 percent and the Philippines 0.1 percent, but Malaysia <.KLSE> edged up 0.3 percent. All were lower on the week.

Thursday, June 9, 2011

Trader's Highlight

DJI-NEW YORK, June 8 (Reuters) - U.S. stocks extended losses for the sixth straight day on Wednesday as investors worried that a slowing economy could deepen the market's retreat.

The latest evidence of a slowdown came in the Federal Reserve's Beige Book, which gives an anecdotal report on the economy. It reinforced Fed chief Ben Bernanke's bearish assessment on growth delivered late on Tuesday. The Dow, which on May 2nd was up 10.6 percent for the year when it hit its 2011 closing high, is now up just 4.1 percent.

The S&P 500, which had climbed as much as 8.2 percent for the year at its 2011 closing high on May 2nd, is now up just 1.7 percent. And the Nasdaq, which on May 2nd was up 8 percent for the year when it set its 2011 closing high, is now up only 0.9 percent.

NYMEX-NEW YORK, June 8 (Reuters) - U.S. crude futures ended higher on Wednesday following OPEC's failure to agree on an output hike, coupled with inventory data that showed crude oil stocks fell sharply last week.

OPEC talks in Vienna broke down when ministers were unable to reach a consensus on boosting production to meet rising global demand and curb fuel price inflation.

On the New York Mercantile Exchange, July crude CLN1 rose $1.65, or 1.67 percent, to settle at $100.74 a barrel, trading from $98.02 to $101.89.

CBOT-SOYBEANS-U.S. soybean futures on the Chicago Board of Trade closed higher on spillover strength from the corn and soymeal markets, traders said.

Soymeal spreads remained strong, with the spot July contract gaining against the August on expectations that flooding along the Missouri River could force some crushing plants in Iowa and Missouri to close.

FCPO-KUALA LUMPUR/JAKARTA, June 8 (Reuters) - Malaysian palm oil dropped to a three-week low on Wednesday as investors adjusted positions on weak technicals, lacklustre external markets and expectations of high stocks.

Stocks in Malaysia are seen rising to a 16-month high in May as production jumps, although traders are waiting to see if cargo surveyors show strong demand from buyers eager to restock on current price correction.

The benchmark August crude palm oil contract KPOc3 on the Bursa Malaysia Derivatives Exchange, fell as much as 1.2 percent to 3,313 Malaysian ringgit ($1,102) a tonne, a level unseen since May 18, before closing at 3,316 ringgit.

Overall traded volume stood at 11,605 lots of 25 tonnes each, versus 11,972 lots on Tuesday.

REGIONAL EQUITIES-COLOMBO, June 8 (Reuters) - Thailand's stock market closed nearly 2percent weaker on Wednesday and touched an 11-week low as offshore investors dumped big caps after foreign brokers downgraded the market on concern over valuations and an upcoming election.

Continued foreign selling in big cap banking and energy shares dragged the index down after foreign brokers including Goldman Sachs downgraded Thai stocks, analysts said.

The Bangkok .SETI market recorded its sixth straight fall to its lowest close since March 18. At one point it was down 2.5 percent.

Malaysia .KLSE closed a tad weaker with $17.3 million in outflows and Vietnam .VNI was down 0.9 percent.

Wednesday, June 8, 2011

Trader's Highlight

DJI-NEW YORK, June 7 (Reuters) - U.S. stocks extended a losing streak for a fifth day on Tuesday on mounting concerns about the economy after bearish comments from Federal Reserve Chairman Ben Bernanke.

The market, which started off on a positive note after the S&P 500 hit a two-month low in the previous session, reversed course to turn negative after Bernanke started speaking. He acknowledged a slowdown in the economy, but offered no suggestion the central bank is considering any further monetary stimulus to support growth.

Bernanke also issued a stern warning to lawmakers in Washington who are considering aggressive budget cuts, saying they have the potential to derail the economic recovery.

The Dow Jones industrial average .DJI slipped 19.15 points, or 0.16 percent, to end at 12,070.81. The Standard & Poor's 500 Index .SPX declined 1.23 points, or 0.10 percent, to 1,284.94. The Nasdaq Composite Index .IXIC shed 1.00 point, or 0.04 percent, to finish at 2,701.56.

NYMEX-NEW YORK, June 7 (Reuters) - U.S. crude oil futures ended slightly higher on Tuesday, supported by a surge in gasoline and heating oil futures and a weaker dollar.

The late rise ended an earlier slide brought about by speculation that OPEC would raise production targets at its meeting on Wednesday in Vienna.

CBOT-SOYBEANS-U.S. soybean futures on the Chicago Board of Trade closed higher in a short-covering bounce after Monday's sell-off, with a weak dollar and strength in soymeal lending support, traders said.

FCPO-JAKARTA, June 7 (Reuters) - Malaysian palm oil slipped to a near three-week low on Tuesday as technical selling and weak comparative markets weighed on prices, while investors positioned themselves ahead of a flurry of data due at the end of the week.

The benchmark August crude palm oil contract KPOc3 on the Bursa Malaysia Derivatives Exchange closed 1 percent lower, at 3,354 Malaysian ringgit ($1,116) a tonne. Prices earlier fell to 3,343 ringgit -- its lowest level since May 19.

Overall traded volume stood at 11,972 lots of 25 tonnes each, versus a total of 9,549lots on Monday.

REGIONAL EQUITIES-COLOMBO, June 7 (Reuters) - Major Southeast Asian stock markets closed flat to weaker in thin volume on Tuesday, led by Thailand, which hits its lowest in more than two months as fears over U.S. growth and Europe's debt crisis led investors to cut holdings in the region.

Thailand .SETI fell for the fifth straight session, with net foreign selling of $125.5 million. It shed 1.1 percent but volume continued low at just 0.77 times its 30-day average. Banks led the fall.

Thursday, June 2, 2011

Trader's Highlight

DJI-NEW YORK, June 1 (Reuters) - Wall Street ended a four-day rally with its worst session since August on Wednesday and could suffer more losses in coming days as investors faced more signs the economic recovery is fading.

All 10 Standard & Poor's sectors ended more than 1 percent lower and all 30 stocks in the Dow industrials fell. Banks were the biggest decliners as the economic reports painted a glum picture for jobs and manufacturing.

The Dow Jones industrial average <.DJI> was down 279.42 points, or 2.22 percent, at 12,290.37. The Standard & Poor's 500 Index <.SPX> was down 30.66 points, or 2.28 percent, at 1,314.54. The Nasdaq Composite Index <.IXIC> was down 66.11 points, or 2.33 percent, at 2,769.19.

NYMEX-NEW YORK, June 1 (Reuters) - U.S. crude futures fell more than 2 percent on Wednesday as disappointing reports on private-sector employment and manufacturing reinforced concerns that slowing economic growth will curb petroleum demand.

The U.S. data arrived ahead of the May nonfarm payrolls report due on Friday. It followed news that European manufacturing growth slipped sharply and China's factories expanded in May at their slowest pace in at least nine months.

On the New York Mercantile Exchange, July crude fell $2.41, or 2.35 percent, to settle at $100.29 a barrel.

CBOT-SOYBEANS - U.S. soybean futures on the Chicago Board of Trade closed higher on Wednesday on spillover support from corn and worries that poor weather could limit U.S. soybean plantings, traders said.

FCPO-KUALA LUMPUR, June 1 (Reuters) - Malaysian palm oil futures fell nearly 1 percent on Wednesday in choppy trading as weak technicals and sluggish external markets discouraged position-taking.

Palm oil, used in products ranging from shampoo to biofuels, gained almost 4 percent in May, after three straight monthly losses, but has fallen 11.3 percent so far in 2011.

The benchmark August crude palm oil contract on the Bursa Malaysia Derivatives Exchange settled 33 ringgit lower to 3,360 ringgit ($1,116) a tonne. On Monday, the contract hit a more than two-month high. Overall traded volume slumped to 17,802 lots of 25 tonnes each from the usual 25,000 lots.

REGIONAL EQUITIES-BANGKOK, June 1 (Reuters) - Most Southeast Asian stock markets posted small gains on Wednesday, with regional big-caps climbing with foreign inflows, but investors remained cautious over the outlook for the global economy.

The region generally saw active sessions, with turnover of most bourses rising well above a 30-day average, led by Malaysia and Indonesia.

Stock indexes climbed to reach highs of more than a week at one point but finished lower due to late selling, with Singapore's main share index <.FTSTI> ending up 0.4 percent and Indonesia <.JKSE> eking out a slim gain.

Market investors are reassessing the outlook of Southeast Asian economies amid rising price pressure in the region and global uncertainty after weak U.S. economic data in recent weeks.