Trader's Highlight

DJI-NEW YORK, Sept 6 (Reuters) - Wall Street fell for a third day on Tuesday on fears Europe still has failed to tackle its debt crisis, prompting worries the market is headed to new lows for the year.

Investors channeled cash into less risky assets as doubts resurfaced over the political will of Italy and Greece to push through tough budget measures and as Germany hardened its stand against providing more aid. The worries over the European debt crisis renewed fears that the global economy could fall into recession.

The S&P 500 is now down 14.5 percent from its highest point in 2011, reached at the end of April. Though investors have periodically taken heart from signs that Europe has carved out a plan to deal with its festering crisis, confidence has been repeatedly walloped every time there is a development showing that the problems have not been solved.

The Dow Jones industrial average .DJI dropped 100.96 points, or 0.90 percent, to 11,139.30. The Standard & Poor's 500 Index .SPX fell 8.73 points, or 0.74 percent, to 1,165.24. The Nasdaq Composite Index .IXIC lost 6.50 points, or 0.26 percent, to 2,473.83.

NYMEX-NEW YORK, Sept 6 (Reuters) - U.S. crude oil futures fell for a second session Tuesday on worries that the euro zone debt crisis could stifle world economic growth, but a new weather disturbance in the Gulf of Mexico pared losses sharply.

The U.S. National Hurricane Center said the new weather system has a 30 percent chance of becoming a tropical cyclone in the next couple of days.

Resuming trade after the U.S. Labor Day holiday weekend, crude for October delivery CLV1 settled on the New York Mercantile Exchange at $86.02 a barrel, down 43 cents, or 0.5 percent, after trading from $83.20 to $86.50.

CBOT-SOYBEANS-Soybean futures on the Chicago Board of Trade fell on Tuesday as the dollar rose on fears of a widening debt crisis in Europe and a slowing U.S. economy, traders said.

The U.S. dollar index .DXY was higher for a sixth straight session and U.S. equity markets fell.

FCPO-KUALA LUMPUR, Sept 6 (Reuters) - Malaysian palm oil futures fell to their lowest in almost two weeks on Tuesday as investors fretted over the worsening euro zone debt crisis that could put the brakes on economic growth and commodity demand.

In the past few weeks, the palm oil market has been supported by solid export demand in August and prospects of a stock draw in No.2 palm oil producer Malaysia.

The benchmark November crude palm oil contract FCPOc3 dropped as much as 1.3 percent to 2,978 ringgit ($1,000.487)-- a level unseen since Aug. 26. The contract later settled at 2,985 ringgit.

Traded volumes stood at 23,014 lots at 25 tonnes each versus the usual 25,000 lots as more trading interest came back after the long holidays last week.

REGIONAL EQUITIES-BANGKOK, Sept 6 (Reuters) - Some Southeast Asian stock markets edged up on Tuesday as investors took their leads from European bourses by buying beaten-down consumer stocks and helping to offset losses in banks and commodities-related shares.

A contagion fear of eurozone debt crisis and renewed worries about U.S. recession put a lid on risk appetite, weighing down early sharemarket sentiment across Southeast Asia.

Trading volume remained weak for most of the region and global uncertainty cast doubts over the outlook of corporate earnings that capped potential stock price upside.

At the close, Singapore's Straits Times Index .FTSTI edged up 0.04 percent, falling as much as 1.35 percent at one point. Stocks in Indonesia .JKSE and Thailand .SETI each ended up 0.6 percent, with Vietnam .VNI up 0.1 percent.

Malaysia .KLSE finished down 0.6 percent and the Philippines .PSI dropped 1.8 percent.