Trader's Highlight

DJI-NEW YORK, Sept 7 (Reuters) - Wall Street bounced more than 2 percent on Wednesday, reversing three days of losses after Germany's top court smoothed the way for Berlin's participation in bailouts that could ease Europe's debt crisis.

But investor caution that there remains a long road to recovery was underscored by light trading and continued high volatility as shown in the CBOE VIX volatility index

The Dow Jones industrial average .DJI gained 275.56 points, or 2.47 percent, to 11,414.86. The Standard & Poor's 500 Index .SPX rose 33.38 points, or 2.86 percent, to 1,198.62. The Nasdaq Composite Index .IXIC added 75.11 points, or 3.04 percent, to 2,548.94.

NYMEX-NEW YORK, Sept 7 (Reuters) - U.S. crude oil futures rebounded sharply on Wednesday, ending at a five-week high on forecasts that inventory data would show a drawdown in crude stocks last week and concerns that more stormy weather could hit the U.S. Gulf of Mexico.

The dollar fell as appetite returned for riskier assets, and Wall Street rallied after three days of losses as Europe's debt concerns eased. Both were supportive for crude oil futures, traders said.

On the New York Mercantile Exchange, crude for October delivery CLV1 settled at $89.34 a barrel, rising $3.32, or 3.86 percent, the highest close since Aug. 3's $91.93 on a continuous price chart. The day's gain was the the biggest one-day percentage rise since Aug. 10, when prices rose 4.53 percent. The contract traded from $86.15 to $89.74.

CBOT-SOYBEANS-Soybean futures on the Chicago Board of Trade fell for a second session, retreating from an early rally on technical selling and softening cash markets ahead of the U.S. harvest, traders said.

Soyoil ended higher as a sharp rally in crude oil buoyed biodiesel prospects.
Cash basis bids for soybeans were down sharply in parts of the U.S. Midwest interior, pressured by slow demand and the approaching harvest, merchandisers said.

FCPO-KUALA LUMPUR, Sept 7 (Reuters) - Malaysian palm oil futures bounced on Wednesday as traders bet on demand shifting to the tropical oil as U.S. soybean crop conditions deteriorate and tighten soyoil supplies.

Traders said the market was oversold the previous day on concerns about the worsening euro zone debt crisis that could stall global economic growth.

Prices also drew support from market views that Malaysian palm oil stocks in August likely fell for a second straight month as exports and local demand outstrip sluggish production during a key Muslim festival.

Benchmark November palm oil FCPOc3 on the Bursa Malaysia Derivatives Exchange settled up 1.9 percent to 3,042 Malaysian ringgit ($1,021) per tonne. The previous day, the contract fell to 2,978 ringgit -- a level unseen since Aug. 26.

Exchange volumes stood at 16,182 lots at 25 tonnes each versus the usual 25,000 lots with trading interest muted after last week's long holidays.

REGIONAL EQUITIES-BANGKOK, Sept 7 (Reuters) - Southeast Asian stock markets climbed higher on Wednesday as investors piled into consumer and telecoms sectors amid improving global sentiment, helped partly by positive data from the United States.

The region's rally came late in the day and with light turnover, with caution lingering about the a euro zone debt crisis and worries that major economies were headed for another recession.

Indonesia's main share index .JKSE jumped 2.9 percent, the highest leap in almost one month, Singapore's Straits Times Index .FTSTI climbed 2.1 percent and Vietnam's .VNI main index rose 1.8 percent.

Stocks in Malaysia .KLSE, Thailand .SETI and the Philippines .PSI posted smaller gains.

Singapore-listed TAC TACC.SI surged 5.7 percent. The telecom buying spree came amid hopes for a launch of long-delayed auction of new third-generation telecommunications licences after a selection of a new industry regulator