DJI - NEW YORK, Nov 7 (Reuters) - The Dow
industrials lost more than 300 points in a sell-off on Wednesday that drove all
major U.S. stock indexes down over 2 percent in the wake of the presidential
election as investors' focus shifted to the looming "fiscal cliff"
debate and Europe's economic troubles.
The Standard & Poor's 500 Index
posted its biggest daily percentage drop since June, with all 10 S&P
sectors solidly lower and about 80 percent of stocks on both the New York Stock
Exchange and the Nasdaq ending in negative territory. Both the Dow and the
S&P 500 closed at their lowest levels since early August.
The election was considered a major
source of uncertainty for the market, but now the focus turns to the fiscal
cliff, with investors worrying that if no deal is reached over some $600
billion in spending cuts and tax increases due to kick in early next year, it
could derail the economic recovery.
Still, some viewed the day's slide
as a buying opportunity, saying it was unlikely that no deal would be reached
on the fiscal cliff and arguing that Europe's troubles were already priced into
markets.
"The notion that you may have
gotten a respite on the financial services side (with regulation) if Romney had
been elected is obviously being unwound," said Mike Ryan, chief investment
strategist at UBS Wealth Management Americas in New York.
In 2008, stocks also rallied on
election day, but then fell by the largest margin on record for a day following
the vote, with each of the three major U.S. stock indexes posting losses
ranging from 5 percent to 5.5 percent.
NYMEX - NEW YORK, Nov 7 (Reuters) - U.S.
crude futures fell 4.8 percent on Wednesday as United States and Europe
economic concerns dragged down markets a day after the re-election of U.S.
President Barack Obama.
CBOT Soybean - Soybean
futures on the Chicago Board of Trade fell 0.5 percent on
long liquidation two days ahead of a monthly report in which the
U.S. Department of Agriculture is expected to raise its estimate
of the U.S. soybean harvest, traders said.
- Spillover pressure from a 4.6 percent drop in U.S. crude oil futures tied to worries about U.S. and European debt.
- Soybeans also weighed down by beneficial crop weather in Brazil, which is projected as the top global soybean producer in 2012/13. However, in Argentina, the No. 3 world soy producer, excessive rain threatens to delay seedings of soybeans and corn.
- Market underpinned by historically high U.S. cash basis bids for soybeans and especially soymeal, reflecting strong soymeal demand from the livestock feeding sector.
- CBOT soyoil ended nearly flat, underpinned by fund short-covering and traders exiting long soymeal/short soyoil spreads.
- Soyoil also buoyed by a technical bounce in Malaysian
palm oil futures, which had fallen to a one-month low.
FCPO - SINGAPORE, Nov 7 (Reuters) -
Malaysian palm oil futures gained on Wednesday, snapping three days of losses,
with investors buying after prices dropped to a one-month low earlier in the
session and on concerns year-end floods in the country could hurt production.
"I heard there are worries
about floods in the Johor area, and we have also seen some technical
buying," said a Singapore-based trader with a global commodities house,
referring to the state that accounts for almost 15 percent of Malaysia's total
palm production.
The benchmark January contract
on the Bursa Malaysia Derivatives Exchange gained 1.1 percent to close at 2,397
ringgit ($786) per tonne. Prices earlier fell to their weakest since Oct. 8 at
2,364 ringgit. Total traded volumes stood at 43,064
lots of 25 tonnes each, much higher than the usual 25,000 lots.
Malaysia's palm oil exports rose 10
percent to a 2012-high at 1.6 million tonnes in October, and the steep discount
between palm oil and soybean oil could uncover more demand and help ease
swelling stocks. Stock levels in Malaysia, the world's
No.2 palm oil producer, were projected to reach a record 2.67 million tonnes in
October, a Reuters survey showed on Tuesday.
Traders are now waiting for
Malaysian exports data for Nov. 1-10 from cargo surveyor Intertek Testing
Services scheduled to be released on Saturday and October stocks data from
industry regulator the Malaysian Palm Oil Board on Monday.
Regional Equity - BANGKOK, Nov 7 (Reuters) - Singapore
stocks climbed to two-week highs on Wednesday, with Indonesia hitting a
one-week high and most other Southeast Asian stock markets paring earlier
losses amid gains in global stocks after U.S. President Barack Obama was
re-elected.
Singapore's Straits Times Index ended up 0.79 percent at 3,043.27, the highest close since Oct. 25. Jakarta's
Composite Index was up 0.8 percent at 4,350.42, the highest
close since Oct. 30.
Bangkok's SET index edged down 0.08 percent, recouping most earlier losses. Malaysia's main index rebounded from an earlier drop to end nearly unchanged.
