Thursday, May 5, 2011

Trader's Highlight

DJI-NEW YORK, May 4 (Reuters) - Weak economic figures heightened stock investors' anxiety over the extended rally, knocking U.S. shares lower for a third day on Wednesday.

Recent winners in the energy and industrials sectors were hit most, and a key indicator of investor worry rose for a fourth day in what some say is the outset of extended weakness for stocks.

The Dow Jones industrial average <.DJI> lost 83.93 points, or 0.66 percent, to 12,723.58. The Standard & Poor's 500 Index <.SPX> fell 9.30 points, or 0.69 percent, to 1,347.32. The Nasdaq Composite Index <.IXIC> dropped 13.39 points, or 0.47 percent, to 2,828.23.

NYMEX-NEW YORK, May 4 (Reuters) - U.S. crude oil futures ended lower for a third day on Wednesday, as a bigger-than-expected rise in crude inventories and disappointing economic data sparked a sell-off in crude and other commodities.

Data showing that the U.S. service sector slowed and the private sector added fewer jobs than expected in April raised worries about the economy's ability to regain some of the growth momentum lost in the first quarter.

On the New York Mercantile Exchange, June crude settled at $109.24, down 41.81, or 1.63 percent, after trading from $108.48 to $111.22. The settlement was the lowest since the April 19 close at $108.15. In three days, front-month crude has fallen $4.69, or 4 percent.

CBOT-U.S. soybean futures ended lower Wednesday, with the July contract down nearly 1 percent, in a third consecutive decline and a sixth lower close in seven sessions.

Traders cited robust harvests in South America, an apparent absence of buying interest from China, and a decline in crude oil futures.

FCPO-KUALA LUMPUR, May 4 (Reuters) - Malaysian palm oil futures ended off two-week lows on Wednesday on growing stocks and reduced risk taking, although higher crude oil limited losses.

There was some profit-taking in external commodity markets after China Securities Journal cited central bank vice governor Yi Gang as saying that China would keep mopping up excess cash in the economy by raising cash reserve requirements for banks.

The benchmark July contract on the Bursa Malaysia Derivatives Exchange dropped as much as 1.3 percent to 3,228 ringgit ($1,085) per tonne -- a level unseen since April 19, before ending at 3,265 ringgit.

Overall traded volume stood at 24,367 lots at 25 tonnes each, a tad lower than 25,000 lots usually traded.

REGIONAL EQUITIES-COLOMBO, May 4 (Reuters) - Thai and Indonesian stock markets edged up in heavy volume on Wednesday as technical rebounds helped recoup early losses, but other Southeast Asian bourses finished mostly lower, with investors cautious amid concerns about global recovery.

Thailand <.SETI>, the region's best performer this year, ended 0.3 percent higher after a 0.7 percent fall in early trade, while Indonesia <.JKSE> closed almost flat with a gain of 0.03 percent having lost 0.8 percent on the day.

Singapore <.FTSTI>, the region's worst performer this year, closed 1.3 percent weaker, while the region's smallest bourse Vietnam <.VNI> jumped 1.4 percent.