DJI- NEW YORK, May 4 (Reuters) - Wall Street ended its worst week this year with a sharp selloff on Friday after a slowdown in job creation in the world's top economy raised the biggest question mark yet about the prospects for U.S. growth.
Employers reduced hiring for the third straight month, adding 115,000 workers in April, well below forecasts of 170,000. Traders' expectations had fallen during the week, but the softer jobs number missed even more pessimistic forecasts.
"When we entered the second quarter, we thought it would be a consolidation/correction quarter for the market simply because it was overbought, over-believed, and we saw economies were not improving, and that is still the case," said Bruce Bittles, chief investment strategist of Robert W. Baird & Co in Nashville.
Investors were also cautious ahead of elections in France and Greece over the weekend as European policymakers struggle to bring an end to their debt crisis and people rebel against the strain of austerity measures. [ID:nL5E8FNASP] [ID:nL5E8G40O9]
The Dow Jones industrial average <.DJI> dropped 168.32 points, or 1.27 percent, to 13,038.27 at the close. The Standard & Poor's 500 Index <.SPX> lost 22.47 points, or 1.61 percent, to 1,369.10. The Nasdaq Composite <.IXIC> fell 67.96 points, or 2.25 percent, to 2,956.34.
The selloff came on the highest volume in two weeks. Around 7.02 billion shares were traded on the NYSE, the Nasdaq and the NYSE Amex, above the daily average of 6.76 billion. On the NYSE, decliners outnumbered advancers by a ratio of 3 to 1. On the Nasdaq, four stocks fell for every one that rose.
With this week's retreat, much of the S&P 500's gains fromthe move off the April closing low at 1,358.59 have been erased. The market has found support around that level in the past, but a breach there could take it back to 1,340.
Also dampening the mood on Friday, surveys showed the euro zone's economy worsened markedly in April and suggested a recession may be deeper than previously thought. The pan-European FTSEurofirst 300 index <.FTEU3> slid 1.7 percent to close at 1,027.15. [.EU][ID:nL4E8G4567]
"People were too optimistic about Europe. They felt the recession was going to be shallow and short, and I felt it would be deep and long, and that is still my posture," Bittles said.
Russian shares plunged 4 percent, wiping out this year's gains in the benchmark MICEX index, as demand for risk assets waned and oil prices hit the rouble currency.
The Russian stock market is the only one of the BRICs countries to be in the red for the year. With this week's retreat, much of the S&P 500's gains from
NYMEX- NEW YORK, May 4 (Reuters) - U.S. crude futures fell nearly 4 percent on Friday as data showing weakening job growth in the United States added to concerns about slowing economic activity.
U.S. employers cut back on hiring in April and more people stopped looking for work, adding to worries about slowing economic growth. [ID:nL1E8G43V1]
Employers added 115,000 workers to their payrolls last month, the Labor Department said, well below economists' expectations. The unemployment rate ticked down by a tenth of a point to a three-year low of 8.1 percent, but only because a drop in the number of people hunting for jobs shrank the labor force.
Confusion of upcoming margin changes at the CME Group's New York Mercantile Exchange and technical selling after U.S. crude fell back under $100 a barrel and Brent crude fell below its 200-day moving average also helped pressure oil prices, analysts and brokers said.
* On the New York Mercantile Exchange, June crude fell $4.05, or 3.95 percent, to settle at $98.49 a barrel, after trading from $97.51 to $102.72.
* For the week, NYMEX crude fell $6.44, or 6.1 percent, the biggest weekly percentage loss since the week to Sept. 23, when prices fell 9 percent.
CBOT SOYBEAN-Soybean futures on the Chicago Board of Trade closed higher Friday on export demand and spillover support from corn that helped the market shake off early weakness tied to sharp declines in U.S. crude oil, traders said.
* Soymeal posted the biggest gains in the soy complex, with most-active July meal rising $6.20 a ton, or 1.5 percent, to end unofficially at $432.60 a ton. July meal gained more than $3 against December on spreads.
* Soyoil fell on meal/oil spreading and spillover weakness from U.S. crude oil futures, which fell more than 4 percent and dropped below $100 a barrel for the first time since mid-February.
* Spot soybean futures unofficially ended the week down 1.5 percent, halting a five-week rally.
* U.S. Department of Agriculture confirmed sales of 120,000 tonnes of U.S. soybeans to unknown destinations for 2012/13 delivery. [ID:nL1E8G43AT]
* Informa Economics projected U.S. 2012 soybean plantings at 75.822 million acres, up from its previous forecast of 74.2 million.
* Informa predicted a jump in South American soybean production in the next crop year, projecting the 2012/13 Brazilian soy crop at 80.5 million tonnes and the 2012/13 Argentine soy crop at 60 million tonnes.
* Canadian stocks of canola fell to a four-year low at 4.7 million tonnes by March 31, according to a Reuters poll of 13 traders and analysts ahead of Monday's Statistics Canada stocks report. [ID:nL1E8FUEOE]
* CME Group was granted a 90-day reprieve from imposing new rules that will hike margins for some exchange members by as much as a third. Traders said the postponement was supportive to grain and oilseed markets. [ID:nL1E8G414O]
* Wet weather will slow corn and soybean seedings in the U.S. Midwest for the next couple of days, followed by drier and cooler but not cold weather. "The forecast looks good for crops in general. There will be rain in most of the Midwest the next three to four days, then drier for the rest of next week," said John Dee, meteorologist for Global Weather Monitoring.
FCPO- SINGAPORE, May 4 (Reuters) - Malaysian palm oil futures ended lower on Friday, touching a six-week low at 3,335 ringgit, the steepest weekly loss since November, as investors remain worried about the health of the global economy.
Global investors are keeping a close watch on U.S. jobs data, due to be released at 1230 GMT, to help them gauge the outlook for the global economy and commodity demand. [ID:nL1E8G1E9I]
"Fundamental strengths are being ignored. This is a technical speculative sell down. Besides, uncertainties surrounding elections in Europe over the weekend dampened any huge position holding," said a dealer with a foreign commodities brokerage in Malaysia.
Benchmark July palm oil futures on the Bursa Malaysia Derivatives Exchange fell 0.6 percent to close at 3,358 ringgit ($1,115) per tonne. The contract ended the week with a 4.2 percent loss, its worst performance since November 2011.
"Price corrections are taking place here but I see it as healthy because the market has been going up too fast. It will probably be over soon as demand is still strong. If next week's
MPOB (Malaysian Palm Oil Board) and exports data continue to be supportive, the market will rebound pretty quickly," said another trader with a local commodites brokerage in Malaysia.
Traded volumes stood at 31,440 lots of 25 tonnes each, much higher than the usual 25,000 lots.
Palm oil will fall to 3,325 ringgit per tonne, a break below which will open the way towards 3,253 ringgit, said Reuters market analyst Wang Tao based on technical analysis. [ID:nL4E8G412S]
On the fundamentals side, palm oil demand remains healthy as indicated by cargo surveyor data. April exports jumped by 9.4 and 10.4 percent from a month ago, according to Intertek Testing Services and Societe Generale de Surveillance respectively. [PALM/ITS] [PALM/SGS]
Demand from major importers China, India and Europe picked up, helping to push up shipments of the edible oil.
Traders are now watching output numbers in No.2 producer Malaysia for more clues on April palm oil stock levels. Higher demand and a lower output will eat into palm oil stocks, which fell below 2 million tonnes in March, and push up palm oil prices.
Industry regulator Malaysian Palm Oil Board will issue official data on output and stocks next week.
Oil slipped under $116 per barrel on Friday, ahead of a U.S. payrolls report, and was poised for its steepest weekly fall since December due to concerns over the health of the global economy and easing fears over supply disruption. [O/R]
REGIONAL EQUITY- BANGKOK, May 4 (Reuters) - Most Southeast Asian stock markets fell on Friday, with Thailand led down by index heavyweight energy shares such as PTT Pcl , amid concerns over the health of the global economy and caution ahead of a U.S. payrolls report.
The Philippine index <.PSI> inched down 0.05 percent at 5,297.55, slightly coming off a record closing high of 5,300.41 on Thursday.
Bucking the trend, Malaysia's main index <.KLSE> extended its gain for a fourth session, ending up 0.5 percent at 1,591.04 on Friday. The Malaysian bourse said foreign investors bought shares for 118 million ringgit ($38.92 million) on the day.
