DJI- NEW YORK, Jan 26 (Reuters) - U.S. stocks sagged on Thursday as traders cashed in on red-hot bank and technology shares, while the Federal Reserve's commitment to easy money to help the U.S. economy rebound weakened the dollar.
The statement by the Fed, which announced on Wednesday it would probably keep interest rates near zero until at least late 2014 - some 18 months later than the Fed had suggested last year - intensified buying of medium- and long-term U.S. government debt. [ID:nL2E8CODR8] The yield on five-year U.S. notes hit 0.7538 percent, a low going back at least 50 years.
The Dow Jones industrial average <.DJI> closed down 22.33 points, or 0.18 percent, at 12,734.63. The Standard & Poor's 500 Index <.SPX> finished down 7.60 points, or 0.57 percent, at 1,318.45. The Nasdaq Composite Index <.IXIC> ended down 13.0 points, or 0.46 percent, at 2,805.28.
NYMEX- NEW YORK, Jan 26 (Reuters) - U.S. crude oil futures ended higher on Thursday, though gains ebbed in late trading as Wall Street slipped and the dollar recouped some losses.
Follow-through buying led to early gains in oil after theU.S. Federal Reserve committed on Wednesday to low rates, combined with concerns about Iran saying it may stop oil sales to European Union countries ahead of the EU's July 1 embargo.
Iran's parliament will debate on Sunday a bill that would oblige the government to halt oil exports ahead of the July 1 deadline the EU set in order to soften the blow to the economies of Greece, Italy and others to which Iran is a major supplier.
On the New York Mercantile Exchange, March crude rose 30 cents, or 0.3 percent, to settle at $99.70 a barrel, having traded from $99.23 to $101.39.
CBOT- SOYBEANS, Chicago Board of Trade soybean futures closed higher on a weaker dollar after the U.S. Federal Reserve decided to leave interest rates near zero for at least a couple more years.
Slow farmer selling and strong cash basis markets likewise lent support, and traders continued to eye the weather in South America for market direction.
FCPO- KUALA LUMPUR, Jan 26 (Reuters) - Malaysian crude palm oil dropped 1.2 percent on Thursday as traders booked profits on slowing export demand, with orders shifting to top producer and competitor Indonesia.
Palm oil bucked the trend in commodity markets -- from oil to soybeans -- that rose after the U.S. Federal Reserve said it would keep interest rates near zero until at least late 2014, providing ample liquidity to spur growth.
Benchmark April palm oil futures on the Bursa Malaysia Derivatives Exchange dropped 1.2 percent to settle at 3,131 ringgit ($1,030)per tonne. Traded volumes were thin after the long weekend holiday at 17,860 lots of 25 tonnes each, versus the usual 25,000 lots.
REGIONAL EQUITY- Jan 26 (Reuters) - Most Southeast Asian stock markets gained on Thursday, with Thailand nearing a five-month high after the U.S. Federal Reserve said it would keep interest rates low for a much longer-than-expected period, ensuring there will be ample liquidity to help spur growth.
Singapore <.FTSTI> edged up 0.1 percent, but the Philippines <.PSI> fell for a third straight session on profit taking, shedding 1.3 percent.
Singapore's stock index was weighed down by profit taking in early activity after nearing the key resistance level of 2,900, traders said, but late buying helped it to end at 2,894.43.
Shares of Singapore-listed technology firm China Auto Corp Ltd leapt over 50 percent after it said its associate had reached a deal to sell some assets to a unit of shipping firm Neptune Orient Lines (NOL) .
