DJI-NEW YORK, Nov 9 (Reuters) - U.S. stocks tumbled 3 percent on Wednesday in the market's worst day since mid-August as a spike in Italian bond yields signaled the European debt crisis had worsened.
U.S. stock markets have grown more chaotic in response to rising volatility in European debt markets, and investors have trouble keeping up with a steady stream of headlines and pricing in how the crisis might play out.
The Dow Jones industrial average <.DJI> was down 389.24 points, or 3.20 percent, at 11,780.94. The Standard & Poor's 500 Index <.SPX> was down 46.82 points, or 3.67 percent, at 1,229.10. The Nasdaq Composite Index <.IXIC> was down 105.84 points, or 3.88 percent, at 2,621.65.
NYMEX-NEW YORK, Nov 9 (Reuters) - U.S. crude futures closed lower on Wednesday in volatile trading, snapping a string of five higher settlements, as pressure from Europe's debt problems and a stronger dollar overpowered support from a drop in U.S. oil inventories.
Italian 10-year bond yields shot above 7 percent, which is widely deemed unsustainable, after Prime Minister Silvio Berlusconi's insistence on elections instead of an interim government opened the way to prolonged instability and delays to long-promised economic reforms.
On the New York Mercantile Exchange, December crude
CBOT-SOYBEANS, Soybean futures on the Chicago Board of Trade fell nearly 2 percent on Tuessday, hitting a one-month low on bearish soy stocks data in USDA's November crop reports and a firmer dollar, traders said.
The U.S. dollar index <.DXY> was up 1.7 percent by the CBOT close as fears grew Italy may be the next euro zone country to seek a bailout and as stock losses accelerated. A stronger dollar makes dollar-denominated grains and other commodities less competitive on the world market.
FCPO-KUALA LUMPUR, Nov 9 (Reuters) - Malaysian palm oil futures slipped off seven-week highs on Wednesday ahead of a key industry report that is expected to show stocks rising to a 22-month high last month.
Losses were limited on an expected cut in yield estimates for the U.S. soy crop crushed into competing edible oils and also after Italian Prime Minister Silvio Berlusconi said he would resign, raising hopes his debt-laden country would push through with economic reforms.
The benchmark January palm oil futures
REGIONAL EQUITIES-BANGKOK, Nov 9 (Reuters) - Some Southeast Asian stock markets posted gains on Wednesday, led by big caps and commodities-related stocks, but buying interest generally weakened as investors waited to see how the debt crisis in Europe would develop.
Risk appetite has been improving in line with progress on the debt problems, leading to a revival in foreign flows to emerging Asia.
Jakarta's Composite Index <.JKSE> climbed 1.4 percent to 3,857.36, rising to the highest in almost two weeks, but turnover fell 20 percent short of its monthly average.
Malaysia <.KLSE> and the Philippines <.PSI> rose 0.6 percent and 0.7 percent respectively but stocks in Singapore <.FTSTI>, Thailand <.SETI> and Vietnam <.VNI> erased early gains, falling 0.3 percent, 1.6 percent and 0.8 percent.
