Trader's Highlight

DJI-NEW YORK, July 29 (Reuters) - Stocks ended the worst week in a year as time runs out on Washington to reach agreement before the U.S. government loses its ability to borrow money.

The S&P 500 fell every day this week and was down 3.9 percent for the week as legislators failed to work out an agreement to raise the federal borrowing limit, which expires on Tuesday. Investors also worry about the likelihood of a U.S. credit downgrade.

The Dow Jones industrial average .DJI was down 96.87 points, or 0.79 percent, at 12,143.24. The Standard & Poor's 500 Index .SPX was down 8.39 points, or 0.65 percent, at 1,292.28. The Nasdaq Composite Index .IXIC was down 9.87 points, or 0.36 percent, at 2,756.38.

NYMEX-NEW YORK, July 29 (Reuters) - U.S. crude oil futures ended down 1.79 percent on Friday, posting the lowest close in two weeks after data showed anemic second-quarter economic growth and Washington remained bogged down in its debt-limit debate.

The latest reading of how the economy has fared this year adds up to a poor first half. It raised the risk of a recession if Washington's the standoff on debt limit remain unresolved by Aug. 2.

On the New York Mercantile Exchange, crude for September delivery CLU1 settled down $1.74 at $95.70 a barrel, the lowest close since July 14's $95.69. It traded from $94.95 to $97.39 in light volume.

CBOT-CHICAGO, July 29 (Reuters) - Chicago Board of Trade soybean futures slipped 1.2 percent on Friday on some rainy weather in the U.S. Midwest that raised expectations for this year's harvest, traders said.

Concerns about economic uncertainty related to the deadlocked U.S. debt talks also pressured the market on Friday. CBOT soybean futures rose 3.4 percent in July, breaking a streak of three straight monthly declines. Soybeans ended the week down 1.9 percent, their second straight week of declines.

FCPO-KUALA LUMPUR, July 29 (Reuters) - Malaysian palm oil futures fell on Friday, but ended the month up almost 1 9 percent, on concerns that the United States may not meet an Aug. 2 deadline to raise its debt limit, hitting global economic growth.

A possible U.S. sovereign credit rating downgrade if the deadline is missed has weighed on financial markets, adding to weak sentiment in palm oil futures which had posted it first weekly drop in four.

Favourable crop weather in the U.S. grain-growing areas, as well as high palm oil stocks in Malaysia and Indonesia also weighed on the market.
The benchmark October contract KPOc3 on the Bursa Malaysia Derivatives Exchange fell 0.6 percent or 20 ringgit to 3,096 ringgit ($1,050.) per tonne after going as low as 3,080 ringgit a level unseen since July 19.

Traded volumes fell to 22,365 lots of 25 tonnes each, compared to the usual 25,000 lots, as investors remained cautious.

REGIONAL EQUITIES-BANGKOK, July 29 (Reuters) - Most Southeast Asian stock markets edged down in moderate to light volume on Friday as investors worried about the possible outcome to the U.S. debt problems and some big caps retreated as results failed to attract fresh buying interest.

Despite the bearish session, foreign investor appetite for the region appears to be growing. Indonesia, the Philippines, Vietnam and Thailand all enjoyed inflows on Friday.

Optimism about the emerging Southeast Asian economy and corporate earnings helped send the region to new highs this month, including a record high in Indonesia, Thailand's 15-year highs and Singapore's three-month highs.