Trader's Highlight

DJI - NEW YORK, June 13 (Reuters) - Wall Street ended lower on Wednesday as fears ahead of the weekend elections in Greece finally drove down a market that had been treading water through most of the day. 

Up to 800 million euros ($1 billion) have been pulled out of Greek banks daily ahead of the cliffhanger election on Sunday, which many fear will result in Greece leaving the euro zone. If that happens, investors fear other peripheral nations may also have to exit.  

The euro zone's cloudy future has made investors inclined to quickly reverse positions. On Wednesday, they pounded shares in financial, energy and materials sectors into the close.  

Volume surged after three weak sessions. About 7.1 billion share trade on the NYSE, Amex and Nasdaq, slightly above the 20-day moving average. 

There's a "lack of details or specifics coming out of Europe, and that creates more of a vicious cycle," said Larry Peruzzi, senior equity trader at Cabrera Capital Markets Inc in Boston. "The euro has been a concern every single day." 

Also weighing on sentiment, the government reported U.S. retail sales fell in May to their worst level in two years, the latest data to point to sluggish U.S. growth after a weaker-than-expected U.S. jobs report in May sparked widespread fears of a slowdown. The S&P Retail Index <.RLX> lost 1.5 percent. 

There was a defensive tilt to trading for much of the day as gains in sectors such as healthcare and telecoms managed for a time to offset declines in cyclical areas. Shares in telecom provider AT&T hit a 52-week high at $35.06, before closing unchanged at $34.98. The telecom sector <.GSPL> ticked up 0.1 percent. 

Shares of JPMorgan Chase & Co were a standout, rising 1.6 percent as the bank's chief executive, Jamie Dimon, defended the portfolio behind JPMorgan's recent multibillion-dollar trading loss, telling lawmakers it was a genuine hedge that would make the firm a lot of money if a credit crisis hit. 

In the overall market, the Dow Jones industrial average <.DJI> fell 77.42 points, or 0.62 percent, at 12,496.38. The Standard & Poor's 500 Index <.SPX> lost 9.30 points, or 0.70 percent, at 1,314.88. The Nasdaq Composite Index <.IXIC> dropped 24.46 points, or 0.86 percent, at 2,818.61.  

The S&P 500 had moved more than 1 percent in opposite directions on the previous two trading days, which were largely dictated by the events in the euro zone. 

On Tuesday the index bounced after falling toward the 1,300 level, a psychological milestone that some traders are using to trade against as index levels assume more importance given the lack of a clear outlook.  

Investors have pushed Spain's 10-year borrowing costs to their highest level since the launch of the euro in 1999, adding to uncertainty over the plan to bail out the country's struggling banks. 

    

An influential government adviser in China was quoted as saying the country's economic growth could fall below 7 percent in the second quarter if weak activity persists in June. 

Investors have been looking to China's relatively robust expansion to pick up the slack from Europe, especially demand for commodities. 

NYMEX - NEWYORK, June 13 (Reuters) - U.S. crude futures fell on Wednesday ahead of an OPEC policy meeting expected to leave the group's production target unchanged, while weak economic data added to the bearish sentiment. 

Saudi Arabia came under pressure from fellow OPEC producers to cut oil output to prevent a further slide in crude prices a day ahead of the group's Thursday policy meeting in Vienna.

After Saudi Arabia initially floated a proposal to lift OPEC's output target, Riyadh quickly dropped the idea and the 12-member producer group looks set to leave its production ceiling unchanged at 30 million barrels per day.     

U.S. data showed retail sales fell for a second straight month in May and wholesale prices dropped the most in three years. The reports were expected to boost chances of further action by the Federal Reserve to shore up the flagging recovery.

U.S. crude inventories fell 191,000 barrels to 384.44 million barrels last week, the Energy Information Administration (EIA) said in a weekly report, a smaller drop than expected.

  

Gasoline stocks fell 1.72 million barrels and distillate stocks fell 63,000 barrels, the EIA said. 

Crude stocks were expected to be down 1.4 million barrels, a Reuters survey of analysts showed. Gasoline stocks were expected to be up 1.1 million barrels and distillate stocks up 1.3 million barrels.  

CBOT Soybean - Soybean futures on the Chicago Board of Trade fell nearly 2 percent by the end of pit trading on long liquidation tied to improving U.S. weather forecasts and on concerns about the global economy, traders said. 

* Front-month July soybeans fell to the lowest level in a week, and soymeal lost ground to soyoil as meal/oil spreads unwound. 

* Slower-than-expected economic expansion in China, the world's largest importer of soybeans, lent further pressure to the soy market. 

* Weather patterns have shifted to a wetter scenario, though they are still short of perfect. Light rain is expected late this week in northwest portions of the U.S. Midwest but dry weather is likely elsewhere, agricultural meteorologists said. 

* Analysts expect the National Oilseed Processors Association's monthly U.S. soybean crush report on Thursday to show the May crush at 135.1 million bushels, up from NOPA's April figure of 131.708 million.

* CBOT reported the number of soybean contracts registered for delivery fell by two contracts late Tuesday, leaving a total of eight contracts registered. Soybean registrations have fallen from more than 600 contracts in late May, a reflection of firming cash markets.  

FCPO SINGAPORE, June 13 (Reuters) - Malaysian palm oil futures closed lower on Wednesday, as concerns that the euro zone debt crisis could slow growth offset demand chasing tighter stocks. 

Uncertainty over Europe's debt crisis comes as investors focus on the Greek elections on June 17 that could lead to the nation's exit from the currency bloc. 

But analysts remained upbeat on lower stocks in No.2 producer Malaysian and crude palm oil's discount of above $160 per tonne to competing soybean oil, a tad higher than a 5-year average level of $158 per tonne. 

The U.S. Department of Agriculture made a slight downward revision in its outlook for soybean ending stocks for both old- and new-crop marketing years, providing support for palm oil prices. 

"In addition, supply shortage due to the tree stress effect (in Malaysia) and monetary easing policy from China should continue to support crude palm oil prices," Alan Lim, research analyst with Malaysia's Kenanga Investment Bank, said in reference to weak production growth.      

Benchmark August palm oil futures on the Bursa Malaysia Derivatives Exchange lost 0.5 percent to close at 2,950 ringgit ($930) per tonne. 

Traded volumes picked up from just 4,331 lots before the midday break to 18,627 lots of 25 tonnes each, but still lower than the usual 25,000 lots. 

Local fundamentals were strong with Malaysian palm oil stocks hitting a 13-month low in May, signalling strong demand was eating into stocks.

Although cargo surveyors have reported lacklustre exports for June 1-10, traders expect shipments to pick up in the later in the month as India and Pakistan do last minute buying ahead of the Muslim fasting month starting in mid-July.      

Brent crude oil held firm on Wednesday, with investors awaiting the outcome of the meeting this week of the producer group OPEC, while gains were capped by worries about Europe's debt crisis and prospects for oil demand.

In other vegetable oil markets, U.S. soyoil for July  delivery gained 0.4 percent in late Asian trade. The most active Jan 2013 soyoil contract on the Dalian commodity exchange closed 0.2 percent lower.