Trader's Highlight

DJI-NEW YORK, Aug 10 (Reuters) - Fear returned to Wall Street on Wednesday, sending the S&P 500 to another 4 percent decline, triggered by worries that Europe's debt crisis could engulf French banks and spill onto the U.S. financial sector.

Trading was once again marked by sharp moves on heavy volume. For a fifth straight day, the Dow industrials fluctuated in a range of more than 400 points.

The Dow Jones industrial average .DJI lost 519.83 points, or 4.62 percent, to 10,719.94. The S&P 500 .SPX fell 51.77 points, or 4.42 percent, to 1,120.76. The Nasdaq Composite .IXIC dropped 101.47 points, or 4.09 percent, to 2,381.05.

NYMEX-NEW YORK, Aug 10 (Reuters) - U.S. crude futures rose 4.5 percent on Wednesday after a government report showed oil inventories fell last week and receiving a late lift from pared losses on Wall Street.

U.S. crude stocks fell 5.2 million barrels last week, the U.S. Energy Information Administration's said in its weekly inventory report, mirroring the draw down reported late on Tuesday by the American Petroleum Institute.

On the New York Mercantile Exchange, September crude CLU1 rose $3.59, or 4.53 percent, to settle at $82.89 a barrel, trading from $79.53 to $83.14.

CBOT-SOYBEANS-Soybean futures on the Chicago Board of Trade ended modestly higher, snapping a five-day decline as traders adjusted positions a day ahead of a U.S. government crop report, traders said.

Trade expects USDA's August monthly crop report on Thursday to project a smaller U.S. 2011 soy harvest than the government forecast in July.

FCPO-JAKARTA/KUALA LUMPUR, Aug 10 (Reuters) - Malaysian palm oil futures rebounded on Wednesday and snapped four straight sessions of losses as cautious investors said the market was oversold on growth and debt worries.

Oil led a rebound among commodities as investors went bargain hunting for riskier assets after the U.S. Federal Reserve promised to extend near-zero interest rates for two more years.COM/WRAP

The benchmark October crude palm oil contract KPOc3 on Bursa Malaysia Derivatives ended 0.6 percent higher at 2,937 ringgit ($971.070) a tonne. Overall traded volumes stood at 23,960 lots of 25 tonnes each, below the usual 25,000 lots.

REGIONAL EQUITIES-BANGKOK, Aug 10 (Reuters) - Most Southeast Asian stock markets pushed higher on Wednesday, turning around from sell-offs earlier this week after markets around the world rallied on the prospect of interest rates in the Unites States remaining near zero for two more years.

Stocks in Indonesia .JKSE and the Philippines .PSI each gained over 3 percent, with domestic investors leading the way.

Malaysia .KLSE and Thailand .SETI posted smaller gains, with late selling suggesting concerns over global volatility.

Singapore .FTSTI, which was closed on Tuesday when regional markets tumbled, dropped 2.2 percent after weak second-quarter economic data and Vietnam .VNI eased slightly.

Dealers in Bangkok expect the market to stay range-bound due to global risk aversion, which could lead to foreign selling even though local sentiment is favourable with a new government taking shape and players focusing on economic policies.

Among weak spot, Singapore-listed Global Logistic Properties GLPL.SI, which owns warehouses in China and Japan, lost as much as 5.9 percent on worries that slowing economic growth and a weaker U.S. dollar may hurt its earnings.

Singapore's economy shrank in the second quarter, but the government said growth in biomedical manufacturing and financial services would help offset concerns of a double-dip recession in the United States.