Trader's Highlight

DJI- NEW YORK, April 19 (Reuters) - Global stocks fell and government debt prices rose on Thursday after a Spanish debt auction failed to allay fears that Spain could be the next European country in need of a bailout and as U.S. economic data cast doubt on the strength of the recovery.

The number of Americans claiming unemployment benefits for the first time fell less than expected last week, suggesting a slowdown in job creation. Other data showed factory activity in the Mid-Atlantic region slowed sharply this month and U.S. home resales fell for a second month in March. [ID:nL2E8FJ25I]

Analysts said part of the data's weakness was payback after an abnormally warm U.S. winter. But few doubted the economy was losing some steam, leaving the door open for further monetary stimulus from the Federal Reserve, a bullish sign for bonds.

"The prospects for easing are on the table and are always going to be on the table," said Sean Incremona, economist at 4CAST LTD in New York. "Euro zone worries, U.S. economy worries - it doesn't look like it's going to be a risk-on day."

Closely watched auctions of French and Spanish debt aided safe-haven assets like Treasuries and German bunds.

Equities in both New York and Europe fell on the economic data. Investors in Europe have increasingly been looking to the United States, as well as emerging markets, to drive European corporate profits while the euro zone economy languishes.

Demand for safe-haven government debt could ease if a meeting this weekend of the International Monetary Fund supports the idea of buffering the so-called peripheral European economies, said John Hendricks, a portfolio manager at Hartford Investment Management in Hartford, Connecticut.

IMF chief Christine Lagarde said on Thursday she expects to win a big boost in funding to help the lender safeguard countries from the euro zone debt crisis. [ID:nL2E8FJ3I3]

"Clearly, the bond market is very focused on headlines out of Europe right now," Hendricks said.

"We're in a very volatile rate environment and we bounce from one headline to the next."

The Dow Jones industrial average <.DJI> ended down 68.65 points, or 0.53 percent, at 12,964.10. The Standard & Poor's 500 Index <.SPX> lost 8.22 points, or 0.59 percent, at 1,376.92. The Nasdaq Composite Index <.IXIC> fell 23.89 points, or 0.79 percent, at 3,007.56.

NYMEX - NEW YORK, April 19 (Reuters) - U.S. crude futures fell a second day on Thursday in tug-of-war trading as weak economic data and slumping gasoline futures helped pressure crude prices.

Front-month Brent crude for June delivery managed a 3-cent gain, as the weak U.S. data helped pull Brent prices back from an early peak, reached when strong investor demand for Spanish debt eased worries about the euro-zone economy.

U.S. initial jobless claims fell only slightly last week, from a revised higher number the previous week, indicating that April job growth may not show much improvement after March's disappointing performance. [ID:nL2E8FJ25I]

* On the New York Mercantile Exchange, May crude fell 40 cents, or 0.39 percent, to settle at $102.27 a barrel, having traded from $101.67 to $103.21. The intraday low was below the 100-day moving average of $101.92. The May contract expires on Friday.

* Saudi Arabia is offering extra crude supplies to some of its existing customers, industry sources said, probably because it has more available while its own refineries are undergoing
maintenance. [ID:nL6E8FJA8L]

* A slowly improving U.S. jobs market and reasonably solid growth at the start of the year have brightened the economic outlook for 2012, reducing chances the Federal Reserve will
conduct another round of bond purchases, a Reuters poll found. [ID:nL3E8FH8X0]

* Mismanagement and theft by top Nigerian officials involved in a corrupt fuel subsidy scheme cost the country $6.8 billion in three years, a parliamentary probe found, calling on President Goodluck Jonathan to overhaul the state oil firm and ministry. [ID:nL6E8FJCSL]

* Weekly stockpiles of fuel oil in Europe's main oil trading hub of Amsterdam-Rotterdam-Antwerp fell by 24 percent over the past week, according to data from independent oil analyst
Patrick Kulsen. Stockpiles of gasoline and gasoil fell while naphtha and jet rose. [ID:nL6E8FJE2N]

CBOT SOYBEAN- Soybean futures on the Chicago Board of Trade ended higher on stronger-than-expected weekly export sales, plus news of fresh U.S. sales to China in the last day, traders said.

However, the market pared gains and briefly turned lower within the last 30 minutes of the session as traders liquidated long outright positions and long soybean/short corn spreads. Open
interest in CBOT soybean futures set a record high this week above 800,000 contracts and funds hold a record-large net long position, leaving the market vulnerable to long liquidation.

Soy market remains underpinned by outlooks for tightening global soy supplies following drought in South America. Argentina's government cut its production estimate for the country's 2011/12 soybean production to 42.9 million tonnes, from 44 million previously, the Agriculture Ministry said in a monthly crop report. USDA confirmed sales within the last day of 110,000
tonnes of U.S. soybeans to China for delivery in 2011/12. USDA reported export sales of U.S. soybeans in the latest week at 1.219 million tonnes (old and new-crop years combined), above a
range of trade expectations for 850,000 to 1.1 million. Sales to China included 127,200 tonnes for 2011/12 and 615,000 for 2012/13. USDA showed export sales of U.S. soymeal in the latest
week at 302,200 tonnes and soyoil sales at 23,900 tonnes, both above trade expectations.

A consortium of Israeli private buyers bought about 22,000 tonnes of U.S. corn products and 20,000 tonnes of U.S. soymeal in a tender - European traders.

FCPO- SINGAPORE, April 19 (Reuters) - Malaysian palm oil futures closed slightly lower on Thursday, recouping most of their losses after Spain sold as many bonds as it wanted, which helped calm fears about the euro zone economy but concerns about slowing demand kept prices lower.

Benchmark July palm oil futures on the Bursa Malaysia Derivatives Exchange lost 0.1 percent to close at 3,477 ringgit ($1,136) per tonne after falling during the session to 3,439 ringgit, its lowest level since March 30.

Traded volumes stood at 34,170 lots of 25 tonnes each, higher than the usual 25,000 lots.

Market players are now keeping a close watch on export data for April 1-20 due to be released on Friday for more signs about the demand trend.[PALM/ITS][PALM/SGS]

Palm oil touched a 13-month high at 3,628 ringgit last week, and traders said it was now going through a price correction as most of the bullish factors, including 7-month low palm oil stocks, have been priced in.

"I think the sentiment now has changed a bit. When the market hit above 3,600 ringgit, everybody was asking for a healthy correction. So now the immediate target is at about 3,400 ringgit," said a trader with a foreign commodities brokerage in Malaysia.

Thursday's bond auctions by Spain and France are key to investor confidence in Europe's ability to tackle growing economic and fiscal problems. Spain managed to sell the 2.5 billion euros ($3.3 billion) of bonds it wanted to, but at higher yields. [ID:nL6E8FJ120]

Tight soybean supply in drought-hit South America remained a bullish factor for palm oil and traders said that any signs that the supply situation is worsening could be supportive for palm
oil futures.

A bearish target of 3,402 ringgit per tonne remains unchanged for palm oil, however, provided it does not suddenly jump to 3,520 ringgit, said Reuters market analyst Wang Tao. [ID:nL3E8FJ0XD]

In related news, a Malaysian farmers' investment cooperative voted in favour of a controversial $2 billion listing of a state-linked palm oil firm, a government minister said on Thursday. [ID:nL3E8FJ600]

REGIONAL EQUITY- April 19 (Reuters) - Thai stocks surged to a two-week high on Thursday led by banking shares but most other stock markets in the region ended flat or lower amid renewed concern over the debt crisis in the euro zone.

Foreign inflow of $43.35 million also helped boost sentiment on the Thai bourse with the <.SETI> jumping 1.5 percent to its highest since April 4. Both Siam Commercial Bank PCL and Kasikornbank PCL were among the big gainers.

But stocks in Indonesia, Philippines, Malaysia and Vietnam fell. The Philippines <.PSI>, which hit a record high on Wednesday, edged down 0.3 percent on profit taking, while Indonesia <.JKSE> finished 0.1 percent weaker with a foreign outflow of $12.3 million.

Malaysia <.KLSE> edged down 0.1 percent, but foreign investors bought a net 205.32 million Malaysian ringgit ($66.99 million) worth shares from Kuala Lumpur. Vietnam <.VNI>, the region's smallest market fell 1.1 percent.

But Singapore <.FTSTI> ended 0.3 percent higher to highest level since April 3.