DJI- NEW YORK, May 9 (Reuters) - U.S. stocks fell for the fifth day in six on Wednesday as investors kept their focus on the turmoil in Europe, but news that Greece will receive its latest debt bailout payment helped cut losses late in the session.
In the afternoon the Nasdaq briefly turned positive and the S&P rose to break-even after news that Greece will get 5.2 billion euros in emergency aid. [ID:nB5E8FA01M]
The turmoil in Europe has driven Wall Street's slide and more investors were hedging against potential further losses. The Dow fell for a sixth straight day and the S&P touched a two-month low before cutting losses.
"It's a very difficult market to trade in. I'm advising my clients to just hedge out all the way into July because we are going to see some heightened volatility like today for awhile," said Randy Frederick, managing director of active trading and derivatives at Charles Schwab in Austin, Texas.
The yield on the 10-year Spanish bond climbed above 6 percent, seen as a troublesome level among investors, after Spain said it will demand banks set aside another 35 billion euros ($45 billion) against loans to the ailing building sector. Huge bank losses have raised fears that the country may need an international bailout. [ID:nL5E8G8H7H]
The Dow Jones industrial average <.DJI> finished down 97.03 points, or 0.75 percent, at 12,835.06. The Standard & Poor's 500 Index <.SPX> was down 9.14 points, or 0.67 percent, at 1,354.58. The Nasdaq Composite Index <.IXIC> fell 11.56 points, or 0.39 percent, at 2,934.71.
NYMEX- NEW YORK, May 9 (Reuters) - U.S. crude futures edged down on Wednesday in choppy trading on the way to a sixth straight lower close, ending well above its intraday low as falling fuel stocks and technical support at the 200-day moving average countered pressure from rising crude oil stockpiles.
U.S. crude oil inventories rose 3.65 million barrels last week, the Energy Information Administration said in its weekly report, more than analyst expectations. [EIA/S]
But the inventory boost in the EIA data was much less than rise of 7.8 million barrels reported by the American Petroleum Institute on Tuesday. [API/S]
Crude stocks were expected to have risen 2 million barrels, with gasoline seen down 100,000 barrels and distillate stocks were expected to be up 100,000 barrels.
Supportive to crude futures was a decision by the board of the European Financial Stability Facility on Wednesday to make a payment of 5.2 billion euros in emergency aid to Greece, overcoming opposition from some euro zone member states. [ID:nL5E8G9D4G]
The post-election turmoil in Greece, with politicians still unable to form a coalition government on Wednesday, and France's choice of a new president, had roiled markets and pressured crude prices this week.
U.S. crude slipped below its 200-day moving average of $96.29 intraday , but recovered to settle well above that level.
* On the New York Mercantile Exchange, June crude fell 20 cents, or 0.21 percent, to settle at $96.81 a barrel, having traded from $95.17 to $97.39.
* Saudi Oil Minister Ali al-Naimi said there is a surplus of oil in the market. "There is a surplus oil in the market. There is surplus supply," he said in brief comments to reporters. [ID:nT9E8FA00E]
* Iran has authorized private Iranian exporters to sell up to 20 percent of its crude exports in a move intended to help skirt international sanctions, the head of the traders' union said. [ID:nL5E8G957K]
* Greece moved closer to a second snap election when the head of the biggest party launched a new attack on leftist Alexis Tsipras, saying his plans for a new government would push the country out of the euro zone. [ID:nL5E8G90JC]
* China will cut gasoline and diesel prices by about 3 percent from Thursday in response to declines in crude oil prices, although the moderate cut is expected to be unlikely to be sufficient to stimulate demand much. [ID:nL4E8G97GY]
CBOT SOYBEAN- Soybean futures on the Chicago Board of Trade fell for a third day on fund long liquidation ahead of a monthly U.S. government crop report, traders said.
* Funds hold a record-large net long position in CBOT soybeans, leaving the market vulnerable to long liquidation.
* Soybeans also influenced by broad risk-aversion trade in commodities as the dollar firmed on concern about political disarray in Greece and the euro zone debt crisis. The Thomson Reuters CRB index <.CRB> of 19 commodities was down 0.15 percent by the CBOT close but pared losses after hitting a seven-month low.
* Soymeal and soyoil followed soybeans lower. Soyoil extended its losing streak to 10 straight sessions.
* Trade expects USDA in its monthly supply/demand report on Thursday to show tightening U.S. and global soy stocks for 2011/12 along with smaller South American harvests, but global stocks may rebound in 2012/13. [ID:nL1E8G7HEY]
* CBOT reported 337 deliveries against the May soybean contract, with the Term house account stopping 290 lots. CBOT reported no soymeal deliveries and 641 soyoil deliveries.
* Bearish chart signals add pressure in soybeans. Following a key reversal to the downside last week, benchmark July soybeans broke below a key trendline on Tuesday, rupturing channel support that has been growing since early 2012. [ID:nL1E8G8E2W]
FCPO- SINGAPORE, May 9 (Reuters) - Malaysian palm oil futures closed lower on Wednesday as heightened political risk in Europe raised concerns about demand and deterred traders who remained sidelined ahead of a slew of industry data due to be released the following day.
Election results in France and Greece that threatened to put euro zone austerity measures in jeopardy limited buying interest in palm oil futures, cutting gains this year to 5 percent.
Industry regulator Malaysian Palm Oil Board (MPOB) will issue official stocks and output numbers for April on Thursday, which market players expect to be lower than the month before.
Benchmark July palm oil futures on the Bursa Malaysia Derivatives Exchange lost 0.5 percent to close at 3,335 ringgit ($1,087) per tonne.
Traded volumes stood at 23,210 lots of 25 tonnes each, thinner than the usual 25,000 lots, as investors were looking for further cues to enter the market.
"Currently it's more like a positioning ahead of the MPOB (Malaysian Palm Oil Board) data and the USDA (U.S. Department of Agriculture) report," said Ker Chung Yang, an analyst with Phillip Futures in Singapore.
"The market is moving according to the dynamics in the macroeconomics. So after what happened in France and Greece, there are still concerns that the measures laid out by the European Union will be overturned."
Cargo surveyors Intertek Testing Services and Societe Generale de Surveillance will issue export numbers for the first 10 days of May on Thursday. [PALM/ITS][PALM/SGS]
Exports jumped by almost 10 percent in April on strong demand from major buyers China, India and Europe. Traders will be monitoring demand trends from major food buyers for signs on restocking.
On the supply front, April stocks should continue a downtrend and stay below the psychological 2-million-tonne mark as exports ate into stocks, a Reuters median survey showed on Monday. [ID:nL4E8G79FP]
The U.S. Department of Agriculture will also be releasing its monthly planting report for soybeans on Thursday. A smaller soybean crop for crushing into competing soybean oil will be supportive for palm oil prices.
REGIONAL EQUITY-BANGKOK, May 9 (Reuters) - Southeast Asian stocks fell on Wednesday as Asian investors continued to worry over political disarray in Greece and the euro zone's debt problems.
Singapore's Straits Times Index <.FTSTI> fell 1.06 percent to a three-month low while Jakarta's Composite Index <.JKSE> dropped 1.24 percent to its lowest in a month.
Across the region, commodities-related shares came under selling pressure, with market players turning cautious on the prospect of their earnings.
Jakarta-based Bahana Securities has cut its 2012 target for Jakarta's Composite Index to 4,500 from 4,600, reflecting worse than expected first quarter earnings and falling commodities prices, Harry Su, head of research said. The index closed at 4,129.06 on Wednesday.
"Commodities prices have been falling and we expect things to actually become worse in the second quarter. For this commodities players, we're expecting to be worse for the second quarter results," he said.
