Trader's Highlight

DJI-NEW YORK, Sept 21 (Reuters) - U.S. stocks suffered their worst drop in a month after the Federal Reserve said there were "significant downside risks" to the economy even as it took another stab at boosting growth.

Selling accelerated as volume spiked in the last hour of trading, with banks and insurers leading the decline, as the KBW Bank index .BKX slid 5.5 percent and the KBW Insurance index .KIX off 5.2 percent. Bank of America BAC.N lost 7.5 percent to $6.38 and Prudential Financial Inc PRU.N slid 6.6 percent to $45.73.

The Dow Jones industrial average .DJI dropped 283.82 points, or 2.49 percent, to 11,124.84. The Standard & Poor's 500 Index .SPX lost 35.33 points, or 2.94 percent, to 1,166.76. The Nasdaq Composite Index .IXIC fell 52.05 points, or 2.01 percent, to 2,538.19.

NYMEX-NEW YORK, Sept 21 (Reuters) - U.S. crude oil futures ended more than 1 percent lower on Wednesday as analysts deemed new easing measures by the Federal Reserve insufficient to jump-start the stalling U.S. economy.

Crude futures were already trading in negative territory before the Federal Reserve's policymakers, at the conclusion of a two-day meeting, issued a statement that, as expected, would put more downward pressure on long-term interest rates.

On the New York Mercantile Exchange, crude for November delivery CLX1 settled at $85.92 a barrel, falling $1, or 1.15 percent, after trading between $85.05 and $87.99.

CBOT-SOYBEANS-Soybean futures on the Chicago Board of Trade fell to a six-week low on concerns about poor export demand for U.S. soybeans and seasonal pressure from the approaching U.S. harvest, traders said.

Market fell to session lows near the closing bell. Benchmark November soybeans SX1 fell below Monday's low of $13.26 and set a six-week low at $13.20.

FCPO-KUALA LUMPUR, Sept 21 (Reuters) - Malaysian palm oil barely moved on Wednesday as investors grew wary over attempts to resolve Europe's debt crisis and shore up the U.S. economy against a slide back into recession -- factors that can stall global commodity demand.

Palm oil prices have been see-sawing in September, torn between the bleak global economic outlook and prospects of strong demand ahead of key public holidays in top buyers India and China next month.

Benchmark December palm oil FCPOc3 on the Bursa Malaysia Derivatives Exchange shed 1 ringgit to end at 3,066 ringgit ($982.85) per tonne. Overall volumes were light, with 21,933 lots of 25 tonnes each changing hands, compared to the usual 25,000 lots.

REGIONAL EQUITIES-Sept 21 (Reuters) - Southeast Asian stock markets closed weaker or with marginal gains on Wednesday in thin trade as investors stayed on the sidelines, waiting for a possible move by the U.S. Federal Reserve to spur growth in the world's largest economy.

The Fed is expected to announce plans later on Wednesday to rebalance its portfolio in favour of longer-dated bonds and so push long-term interest rates -- already near historic lows -- even lower in a move known as Operation Twist.

But Malaysia .KLSE recovered from its lowest in over a year to end 0.6 percent firmer with foreign inflows of $5.2 million, while Singapore .FTSTI rose 0.4 percent and Thailand .SETI gained 0.3 percent with $9.6 million in inflows.

In Kuala Lumpur, Malaysian conglomerate Sime Darby SIME.KL, the world's top palm oil planter by landbank size, jumped 4.2 percent after recent selling. Analysts said the market's concerns over the company's acquisition of a stake in Eastern and Oriental ENOB.KL were overdone.