Trader's Highlight

DJI-NEW YORK, Nov 14 (Reuters) - U.S. stocks fell on Monday as rising bond yields in Italy and other euro-zone countries reminded investors that despite changes in governments, the region's debt crisis could still spin out of control.

Banks posted the largest losses, but overall volume was unusually weak. The KBW bank index <.BKX> dropped 2.5 percent, with Bank of New York Mellon down more than 4 percent.

The Dow Jones industrial average <.DJI> dropped 74.70 points, or 0.61 percent, at 12,078.98. The Standard & Poor's 500 Index <.SPX> fell 12.07 points, or 0.96 percent, at 1,251.78. The Nasdaq Composite Index <.IXIC> lost 21.53 points, or 0.80 percent, at 2,657.22.

NYMEX-NEW YORK, Nov 14 (Reuters) - U.S. crude futures fell on Monday as data showing a sharp drop in euro zone industrial production stoked worries the region could slide into recession, painting a gloomy outlook for world oil demand.

New leaders in Italy and Greece began to form governments, but a market rally reflecting optimism about their appointment stalled.

On the New York Mercantile Exchange, December crude fell 85 cents, or 0.86 percent, to settle at $98.14 a barrel. On Friday it closed at $98.99, the highest since July 26, up $4.73 or 5.02 percent and extending gains for a sixth straight week.

CBOT-SOYBEANS, Chicago Board of Trade soybean futures closed higher on talk China was in the market for U.S. soy, slow farmer selling and firm cash soybean markets.

NOPA said October U.S. soy crush 141.179 million bushels, below an average of analysts' estimates for 142.25 million.

FCPO-JAKARTA, Nov 14 (Reuters) - Malaysian palm oil futures climbed to a near five-month high on Monday as sentiment on euro zone debt problems improved, with supply and demand fundamentals offering further support for the edible oil.

Benchmark January palm oil futures on the Bursa Malaysia Derivatives Exchange closed 1.9 percent higher at 3,195 Malaysian ringgit ($1,016) per tonne. Prices earlier touched a peak at 3,198 ringgit, a level not seen since June 22.

Benchmark palm prices have fallen about 15 percent this year, partly due to the uncertain global economic picture and demand outlook.

Palm oil sentiment is improving, despite the macro outlook, due to lower production expectations from the fourth quarter, as dominant Southeast Asian producers enter the rainy season.

REGIONAL EQUITIES-BANGKOK, Nov 14 (Reuters) - Most Southeast Asian stock markets climbed more than 1 percent on Monday as commodity-related stocks gained, while flood-hit Thai stocks hit seven-week highs due to optimism about a rise in consumer demand and government spending once the flooding ends.

Easing concern about political deadlock in Greece and Italy has improved the investment climate, spurring fund flows into the region even though the euro zone debt crisis is far from over.

Singapore's Straits Times Index <.FTSTI> climbed 1.4 percent, led by a 3 percent rise in Golden Agri-Resources Ltd after the palm oil firm reported higher third-quarter earnings.

Most palm oil shares rallied as Malaysian palm oil futures climbed to a near-five-month high.

Singapore-listed Noble Group , Malaysia's IOI Corporation Bhd and Indonesia's PT Astra Agro Lestari Tbk each gained more than 2 percent.