DJI- NEW YORK, June 6 (Reuters) - U.S. stocks jumped on Wednesday, giving the S&P 500 its best day since December, as talk of a rescue of Spain's troubled banks and hopes for more monetary stimulus sparked a rebound from recent selling.
After a 6 percent fall by the S&P 500 in May that took the index below its key 200-day moving average on Friday, the market was ripe for a rebound, analysts said. Buying was strong across the broad market, with all 10 S&P 500 sectors gaining ground.
The energy, financial and technology sectors, all of which are tied to strong global demand, led gainers Wednesday. Among the big banks, shares of Bank of America shot up 7.6 percent to $7.64 and shares of Morgan Stanley climbed 8.4 percent to $13.94, both extending gains just ahead of the close.
European sources said German and European Union officials were seeking solutions for Spain's weakened banks, the latest worry in the fiscally troubled euro zone. Madrid has not yet requested assistance and is resisting political conditions.
European Central Bank President Mario Draghi suggested earlier Wednesday that further stimulus to tackle the euro zone's debt crisis would not necessarily be forthcoming, but speculation persisted that the ECB could act if financial market tensions intensify further.
The ECB left interest rates unchanged following its meeting Wednesday.
The Dow Jones industrial average <.DJI> was up 286.84 points, or 2.37 percent, at 12,414.79. The Standard & Poor's 500 Index <.SPX> was up 29.63 points, or 2.30 percent, at 1,315.13. The Nasdaq Composite Index <.IXIC> was up 66.61 points, or 2.40 percent, at 2,844.72.
NYMEX- NEW YORK, June 6 (Reuters) - U.S. crude futures rose for a third straight day on Wednesday as European efforts to rescue troubled Spanish banks sent the euro higher, weakened the dollar and boosted equities and oil prices.
Oil prices also received support when a U.S. Fed official hinted at more monetary easing to support the economy. Germany and European Union officials are urgently exploring ways to rescue Spain's debt-stricken banks, although Madrid has not yet requested assistance and is resisting political conditions, European Union sources said.
The euro rallied against the dollar and the yen after the European Central Bank held its main interest rate at 1.0 percent, resisting international pressure to provide more support for the euro zone's economy.
On the New York Mercantile Exchange, July crude rose 73 cents, or 0.87 percent, to settle at $85.02 a barrel, having traded from $84.03 to $86.27.
CBOT SOYBEAN- June 6 (Reuters) - Soybean futures on the Chicago Board of Trade rose 2.7 percent by the end of pit trading at 1:15 p.m. CDT (1815 GMT) on Wednesday, the biggest daily rise in two months, on firm cash markets and news of old-crop sales to China, traders said.
Additional support stemmed from a weaker dollar <.DXY> and broad-based strength in commodities amid talk major central banks would act to bolster a slowing global economy.
Nearby soybean and soymeal contracts gained against back months on spreads, supported by ideas a farmers' strike in Argentina could steer more export business to the United States.
Argentine farmers halted grain sales on Wednesday at the start of a one-week strike over government farming policy -- their first national freeze on sales of grains and livestock for 18 months.
USDA confirmed sales of 120,000 tonnes of U.S. soybeans to China for 2011/12 delivery.
The U.S. Midwest should remain dry this week, with rainfall next week totaling 0.50 to 1.50 inches. Temperaturewill remain moderate this week with highs in the 70s to 80s Fahrenheit, warm into the 90s F by the weekend and return to the 70s F and 80s F next week.
FCPO- SINGAPORE, June 6 (Reuters) - Malaysian palm oil futures extended gains on Wednesday, as investors bet on rising Asian demand for the edible oil, although caution prevailed, inspired by concerns the euro zone crisis will crimp economic growth and commodity demand.
Palm oil closed at its lowest level in 2012 on Monday, setting the stage for a price recovery as market players went bargain hunting.
"After the shock on Monday, for the past two days prices have recovered lost ground. But on the backdrop, the euro zone problem is still not solved," said Ker Chung Yang, commodities analyst with Phillip Futures in Singapore.
"So although we are going to see some rebound, it's likely that investors will adopt a cautious attitude. They are more concerned about the upcoming Malaysian Palm Oil Board data to gauge the extent of the impact of the crisis."
Benchmark August palm oil futures on the Bursa Malaysia Derivatives Exchange gained 1.3 percent to close at 3,003 ringgit ($946) per tonne. Prices touched a low of 2,925 ringgit on Monday, their lowest since Nov 2, 2011.
Traded volumes stood at 25,208 lots of 25 tonnes each, just slightly higher than the usual 25,000 lots.
REGIONAL EQUITY- BANGKOK, June 6 (Reuters) - Indonesian shares jumped 3.3 percent on Wednesday, helping them post their biggest daily gains since September, while Thai shares snapped their two-session losing streak as banking shares rose after losses.
Jakarta's Composite Index <.JKSE> ended at 3,841.33, gaining for a second straight day as the technically oversold market lured bargain hunters.
Buying momentum has picked up, with Indonesia's index climbing above the "oversold" mark. Its 14-day relative strength index (RSI) closed at 40.5, compared with 28.9 on Tuesday and 17.95 on Monday. A level of 30 or lower indicates the market is oversold.
Among advancers, shares of the world's biggest microlender PT Bank Rakyat Indonesia surged 11.2 percent thanks to its strong loan growth, a broker said.
