DJI- NEW YORK, Feb 27 (Reuters) - Oil prices snapped a week-long rally on Monday and the S&P 500 stocks index edged up to its highest level since June 2008, while positive U.S. home sales data soothed investor worries about the effect of high energy costs on the economy.
U.S. crude oil prices fell more than 1 percent. Stocks, after a weak start, ended little changed, but the S&P was able to extend its gains for a third session.
In Asia, however, stocks were set for a shaky start, with Nikkei futures traded in Chicago falling 115 points.
The dollar rose as some of the investment money in oil flowed into currencies after officials from the Group of 20 countries sounded fears that rising energy prices were hurting global economic growth.
The greenback rebounded from a near three-month low against the euro. It hit a nine-month peak versus the yen before giving back some gains.
U.S. Treasuries climbed on demand for safe-haven government debt. The benchmark 10-year U.S. Treasury note was up 14/32, its yield at 1.9273 percent.
High energy costs have been cited as one factor preventing a runaway rally in equities.
Stocks on Wall Street are up 9 percent year-to-date, as measured by the S&P 500 index. But it has been stuck in a tight range of around 1,355-1,370 points despite data pointing to a firmer recovery in the U.S. economy, including the housing and labor markets.
The Group of 20 finance ministers and central bankers said on Sunday they were alert to risks of higher oil prices and discussed at length the impact sanctions on Iran will have on crude supplies and global growth.
At the close, the Dow Jones industrial average was down 1.44 points, or 0.01 percent, at 12,981.51. The Standard & Poor's 500 Index was up 1.85 points, or 0.14 percent, at 1,367.59. The Nasdaq Composite Index was up 2.41 points, or 0.08 percent, at 2,966.16.
NYMEX- NEW YORK, Feb 27 (Reuters) - U.S. crude oil futures fell on Monday, ending a seven-day winning streak, as overbought conditions and a warning from G20 officials about the impact of higher oil prices on global growth prompted investors to book
profits.
In regular floor-trading hours losses were capped on news that TransCanada Corp aimed to build the southern leg of its $7 billion Keystone XL oil pipeline first. That would skirt full federal review of the project and sparked competition
to move crude out of the glutted Cushing, Oklahoma, delivery point for U.S.-traded crude futures.
In post-settlement electronic trading, U.S. crude extended losses to more than $2. Analysts cited momentum trading and technical sell stops being triggered in electronic trading.
Gasoline and heating oil futures fell, dragged down by weaker crude oil and by selling ahead of weekly inventory reports.
Worries about Greek's debt crisis continued to ease as Chancellor Angela Merkel managed to get a second Greek bailout approved in the German parliament without having to rely on the votes of opposition lawmakers. But she fell short of the big
majority needed for a convincing victory.
Officials of the G20, which represents the world's leading economies, said in a meeting in Mexico City that Europe must put up extra money if it wants more help from the rest of the world, raising pressure on Germany to drop its opposition to a bigger European bailout fund.
On the New York Mercantile Exchange, crude for April delivery settled at $108.56 a barrel, down $1.21, or 1.1 percent, after trading between $108.24 to $109.77. In
post-settlement trading, it fell further to $107.27.
CBOT SOYBEANS- Soybean futures on the Chicago Board of Trade ended higher for a
sixth straight session, reaching a five-month top on expectations of continued U.S. export demand from China amid shrinking soy crops in South America, traders said.
Spot soybeans hit $12.95 per bushel, the highest spot price on the continuous chart since Sept. 22, 2011. The March and May contracts broke and settled above
their 200-day moving averages.
Spot soyoil and soymeal futures also hit five-month peaks, with soyoil reaching 54.60 cents per lb and soymeal touching $340.60 a ton.
Soybeans lifted by ongoing export demand from China and outlooks for dwindling U.S. soybean supplies.
Brazilian consultancy Agrural cut its estimate of Brazil's 2011/12 soy crop to 68 million tonnes, from 70.2 million last month, while another firm, Agroconsult, lowered its forecast to 69.9 million tonnes, from 71 million previously.
FCPO- SINGAPORE, Feb 27 (Reuters) - Malaysian crude palm oil futures ended off an eight-and-a-half month high on Monday, with traders booking some profit on a rally driven by improving demand and still-high energy prices.
Oil prices also slipped below $125 after five days of gains pushed the benchmark to 10-month highs, prompting other commodity markets like palm oil to give up some gains.
Palm oil prices have gained more than 6 percent so far this year. The export trend is positive for crude palm oil prices.
High oil prices will also be supportive because about 11 percent of global vegetable oil is used for biodiesel," said Alan Lim, research analyst with Malaysia's Kenanga Investment Bank.
"But the Europe situation is still unresolved in the short term and that could be mildly negative for palm oil prices," the analyst cautioned.
Benchmark May palm oil futures on the Bursa Malaysia Derivatives Exchange ended up 0.2 percent to 3,282 ringgit ($1,086) per tonne after going as high as 3,298 ringgit,
the highest since June 9 last year. Traded volumes stood at 20,246 lots of 25 tonnes each,compared to the usual 25,500 lots.
REGIONAL EQUITY- Feb 27 (Reuters) - Southeast Asian stock markets closed weaker on Monday as rising oil prices raised concerns over global economic growth, weighing on how investors feel about the region's emerging markets.
Trading volumes were moderate as cautious investors stayed cautious, due to growth worries. Some were focusing on the European Central Bank's second refinancing operation set for Wednesday for more cues.
Foreign investors were net sellers in Indonesia with a $54.3 million outflow. Enjoying new inflows on Monday were Thailand ($20.3 million) and Malaysia (51.17 million ringgit, or $16.7million).
Oil prices held near a 10-month high on Monday due to supply concerns as tensions over Iran's disputed nuclear programme worsened, while the rise in oil weakened the outlook for industrial metals demand and pushed copper futures lower.
In Singapore, lack of positive triggers led some investors to take profits ahead of the earnings reports of several large companies, including Noble Group Ltd, Sembcorp Industries Ltdand City Developments Ltd later this week, traders said.
Gold and cash were the preferred assets for investment amongst investors, while equities have become the least favoured category, the survey, which measures attitudes towards investment conditions in Singapore, showed.
U.S. crude oil prices fell more than 1 percent. Stocks, after a weak start, ended little changed, but the S&P was able to extend its gains for a third session.
In Asia, however, stocks were set for a shaky start, with Nikkei futures traded in Chicago falling 115 points.
The dollar rose as some of the investment money in oil flowed into currencies after officials from the Group of 20 countries sounded fears that rising energy prices were hurting global economic growth.
The greenback rebounded from a near three-month low against the euro. It hit a nine-month peak versus the yen before giving back some gains.
U.S. Treasuries climbed on demand for safe-haven government debt. The benchmark 10-year U.S. Treasury note was up 14/32, its yield at 1.9273 percent.
High energy costs have been cited as one factor preventing a runaway rally in equities.
Stocks on Wall Street are up 9 percent year-to-date, as measured by the S&P 500 index. But it has been stuck in a tight range of around 1,355-1,370 points despite data pointing to a firmer recovery in the U.S. economy, including the housing and labor markets.
The Group of 20 finance ministers and central bankers said on Sunday they were alert to risks of higher oil prices and discussed at length the impact sanctions on Iran will have on crude supplies and global growth.
At the close, the Dow Jones industrial average was down 1.44 points, or 0.01 percent, at 12,981.51. The Standard & Poor's 500 Index was up 1.85 points, or 0.14 percent, at 1,367.59. The Nasdaq Composite Index was up 2.41 points, or 0.08 percent, at 2,966.16.
NYMEX- NEW YORK, Feb 27 (Reuters) - U.S. crude oil futures fell on Monday, ending a seven-day winning streak, as overbought conditions and a warning from G20 officials about the impact of higher oil prices on global growth prompted investors to book
profits.
In regular floor-trading hours losses were capped on news that TransCanada Corp aimed to build the southern leg of its $7 billion Keystone XL oil pipeline first. That would skirt full federal review of the project and sparked competition
to move crude out of the glutted Cushing, Oklahoma, delivery point for U.S.-traded crude futures.
In post-settlement electronic trading, U.S. crude extended losses to more than $2. Analysts cited momentum trading and technical sell stops being triggered in electronic trading.
Gasoline and heating oil futures fell, dragged down by weaker crude oil and by selling ahead of weekly inventory reports.
Worries about Greek's debt crisis continued to ease as Chancellor Angela Merkel managed to get a second Greek bailout approved in the German parliament without having to rely on the votes of opposition lawmakers. But she fell short of the big
majority needed for a convincing victory.
Officials of the G20, which represents the world's leading economies, said in a meeting in Mexico City that Europe must put up extra money if it wants more help from the rest of the world, raising pressure on Germany to drop its opposition to a bigger European bailout fund.
On the New York Mercantile Exchange, crude for April delivery settled at $108.56 a barrel, down $1.21, or 1.1 percent, after trading between $108.24 to $109.77. In
post-settlement trading, it fell further to $107.27.
CBOT SOYBEANS- Soybean futures on the Chicago Board of Trade ended higher for a
sixth straight session, reaching a five-month top on expectations of continued U.S. export demand from China amid shrinking soy crops in South America, traders said.
Spot soybeans hit $12.95 per bushel, the highest spot price on the continuous chart since Sept. 22, 2011. The March and May contracts broke and settled above
their 200-day moving averages.
Spot soyoil and soymeal futures also hit five-month peaks, with soyoil reaching 54.60 cents per lb and soymeal touching $340.60 a ton.
Soybeans lifted by ongoing export demand from China and outlooks for dwindling U.S. soybean supplies.
Brazilian consultancy Agrural cut its estimate of Brazil's 2011/12 soy crop to 68 million tonnes, from 70.2 million last month, while another firm, Agroconsult, lowered its forecast to 69.9 million tonnes, from 71 million previously.
FCPO- SINGAPORE, Feb 27 (Reuters) - Malaysian crude palm oil futures ended off an eight-and-a-half month high on Monday, with traders booking some profit on a rally driven by improving demand and still-high energy prices.
Oil prices also slipped below $125 after five days of gains pushed the benchmark to 10-month highs, prompting other commodity markets like palm oil to give up some gains.
Palm oil prices have gained more than 6 percent so far this year. The export trend is positive for crude palm oil prices.
High oil prices will also be supportive because about 11 percent of global vegetable oil is used for biodiesel," said Alan Lim, research analyst with Malaysia's Kenanga Investment Bank.
"But the Europe situation is still unresolved in the short term and that could be mildly negative for palm oil prices," the analyst cautioned.
Benchmark May palm oil futures on the Bursa Malaysia Derivatives Exchange ended up 0.2 percent to 3,282 ringgit ($1,086) per tonne after going as high as 3,298 ringgit,
the highest since June 9 last year. Traded volumes stood at 20,246 lots of 25 tonnes each,compared to the usual 25,500 lots.
REGIONAL EQUITY- Feb 27 (Reuters) - Southeast Asian stock markets closed weaker on Monday as rising oil prices raised concerns over global economic growth, weighing on how investors feel about the region's emerging markets.
Trading volumes were moderate as cautious investors stayed cautious, due to growth worries. Some were focusing on the European Central Bank's second refinancing operation set for Wednesday for more cues.
Foreign investors were net sellers in Indonesia with a $54.3 million outflow. Enjoying new inflows on Monday were Thailand ($20.3 million) and Malaysia (51.17 million ringgit, or $16.7million).
Oil prices held near a 10-month high on Monday due to supply concerns as tensions over Iran's disputed nuclear programme worsened, while the rise in oil weakened the outlook for industrial metals demand and pushed copper futures lower.
In Singapore, lack of positive triggers led some investors to take profits ahead of the earnings reports of several large companies, including Noble Group Ltd, Sembcorp Industries Ltd
Gold and cash were the preferred assets for investment amongst investors, while equities have become the least favoured category, the survey, which measures attitudes towards investment conditions in Singapore, showed.
