Trader's Highlight

DJI-NEW YORK, Sept 19 (Reuters) - World stocks snapped a four-day rally on Monday, while the euro and oil prices dropped on concern Greece may default on its debt and trigger economic fallout that would cascade throughout the euro zone and possibly beyond.

But U.S. stocks and the euro recovered from their worst levels in late trade after Greece's Finance Ministry said the country was near an agreement with its international lenders to continue receiving bailout funds. U.S. Treasury debt prices pared gains.

Wall Street stocks ended lower despite the late-session rebound. The Dow Jones industrial average .DJI closed down 108.08 points, or 0.94 percent, at 11,401.01. The Standard & Poor's 500 Index .SPX was down 11.92 points, or 0.98 percent, at 1,204.09. The Nasdaq Composite Index .IXIC was down 9.48 points, or 0.36 percent, at 2,612.83.

NYMEX-NEW YORK, Sept 19 (Reuters) - U.S. crude futures fell on Monday as mounting concerns about the euro zone debt crisis fueled investor fears about the demand outlook for commodities, pressuring equities and the euro and strengthening the dollar.

World stocks snapped a four-day rally and the the euro fell on concern that Greece may default on its debt and trigger economic fallout that would cascade throughout the euro zone and possibly beyond.

On the New York Mercantile Exchange, October crude CLV1 fell $2.26, or 2.57 percent, to settle at $85.70 a barrel, trading from $84.79 to $87.75.

CBOT-SOYBEANS-Soybean futures on the Chicago Board of Trade fell to a five-week low and posted a sixth consecutive decline, pressured by fund long liquidation as the dollar firmed on worries about Greek debt, traders said.

The U.S. dollar index .DXY was up 0.6 percent on renewed fears of a Greek debt default, prompting investors to cut risk by selling crude oil, grains and other commodities. [nS1E78I0CG]

U.S. crude oil futures CLc1 were down roughly $2 a barrel, or 2.3 percent, when the CBOT grain markets closed.Benchmark November soybeans SX1 fell to their lowest level since Aug. 12 and unofficially ended below the 200-day moving average of $13.39-3/4.

FCPO-KUALA LUMPUR, Sept 19 (Reuters) - Malaysian palm oil futures fell on Monday as Europe stumbled over attempts to solve the euro zone debt crisis, strengthening investor fears commodity demand growth may slow.

Palm oil has lost almost 20 percent so far this year on high stocks and a slowdown in demand, although some traders bet that festival demand in India may see some orders coming in.

Benchmark December palm oil FCPOc3 on the Bursa Malaysia Derivatives Exchange settled down 0.94 percent to 3,041 ringgit ($984.38) per tonne.

Overall trade volumes were light, with 14,092 lots of 25 tonnes changing hands, compared to the usual 25,000 lots, as the market was still quiet after a long weekend.

REGIONAL EQUITIES-Sept 19 (Reuters) - Main Southeast Asian stock markets fell on Monday , led by financials with Malaysia hitting a more-than one-year low on global concerns after a weekend meeting to solve euro zone sovereign debt crisis ended without progress.

A weekend of disappointing news from the euro zone prompted market players to cut risk and move into gold and U.S. Treasuries, even as speculation grew that the Federal Reserve would announce further policy easing moves to stimulate the sputtering U.S. economy at a meeting this week

Malaysia .KLSE fell 1.2 percent to its lowest close since Aug. 27, 2010, Thailand .SETI fell 1.6 percent to its lowest close since June 28, and Singapore's Straits Times Index .FTSTI fell 1.1 percent.

The cancellation of a visit by Greek Prime Minister George Papandreou to the United States to chair an emergency cabinet meeting at home, and a regional election defeat for German Chancellor Angela Merkel, added to a sense of worsening crisis.

Shares of Singapore banks were among the biggest losers on the benchmark index, with DBS DBSM.SI down 2.8 percent and United Overseas Bank UOBH.SI 2.3 percent lower.

Malaysia saw net foreign outflows of $15.8 million on Monday with financials AMMB Holdings AMMB.KL and CIMB Group CIMB.KL falling 1.3 percent and 6.9 percent respectively.