Trader's Highlight

DOW JONES-NEW YORK, Jan 11 (Reuters) - U.S. stocks held firm near recent five-month highs on Wednesday as investors awaited key bond market tests for Europe in the next two days that could determine the direction of the euro zone crisis.

U.S. equities have been performing better in the face of turmoil from Europe's sovereign debt problems. This is a major change from four months ago and comes as investors have taken improving U.S. economic data to heart and an optimistic view about corporate earnings.

The Dow Jones industrial average <.DJI> slipped 13.02 points, or 0.10 percent, to 12,449.45. The Standard & Poor's 500 Index <.SPX><.INX> gained 0.40 point, or 0.03 percent, to 1,292.48. The Nasdaq Composite Index <.IXIC> gained 8.26 points, or 0.31 percent, to 2,710.76.

NYMEX-NEW YORK, Jan 11 (Reuters) - U.S. crude futures fell on Wednesday after a government report showed inventories of crude oil and refined products rose last week and as re-emerging concerns about Europe's debt crisis pushed the euro to a 16-month low against the dollar.

U.S. commercial crude stocks jumped 5 million barrels in the week to Jan. 6, the U.S. Energy Information Administration said.

On the New York Mercantile Exchange, February crude fell $1.37, or 1.34 percent, to settle at $100.87 a barrel, having traded from $100.55 to $102.46.

CBOT-SOYBEANS, Soybean futures on the Chicago Board of Trade fell more than 2 percent, their biggest single-day pullback in a month, on better-than-expected rains in Argentina's crop belt and a rally in the U.S. dollar, traders said.

FCPO-SINGAPORE, Jan 11 (Reuters) - Malaysian crude palm oil futures inched up on Wednesday as prospects of lower edible oil output in South America and Southeast Asia offset worries over the euro zone debt crisis.

Investors remained cautious ahead of the Spanish and Italian debt auctions on Thursday and Friday as any signs of the debt crisis worsening could lower global economic growth and commodity demand.

Benchmark March palm oil futures on the Bursa Malaysia Derivatives Exchange erased earlier losses to close 0.6 percent higher at 3,233 ringgit ($1,030) per tonne. Traded volumes were thin at 16,062 lots of 25 tonnes each, compared to the usual 25,000 lots, as investors were waiting for further cues.

REGIONAL EQUITIES-BANGKOK, Jan 11 (Reuters) - Most Southeast Asian stock markets gained on Wednesday, helped by buying in commodities-related stocks, but Europe's debt crisis continued to weigh on risk appetite.

The market mood improved after U.S. stocks advanced to a five-month high on hopes for strong corporate earnings but data showing the German economy shrank in the final quarter of 2011 pulled Asian shares off their early highs.

Singapore <.FTSTI> rose 1 percent and Vietnam <.VNI> gained 0.8 percent. Late selling erased early gains in Malaysia <.KLSE>, Thailand <.SETI> and Indonesia <.JKSE>. Malaysia ended flat, Thai stocks inched down 0.13 percent and Indonesia lost 0.7 percent.

Singapore's rig builders extended gains on expectations of more orders, with Sembcorp Marine Ltd surging 5.3 percent. In Kuala Lumpur, petrochemical firm Petronas Chemicals Group Bhd rose 1.6 percent.