Trader's Highlight

DOW JONES-Wall Street fell on Thursday after the European Central Bank dashed hopes that policy-makers were preparing a financial "bazooka" to contain the debt crisis, and Germany rejected some proposals to add power to the euro zone's bailout fund.

U.S. markets have been on edge all week in anticipation of a summit deal that would come to grips with the euro zone's growing debt crisis, and pave the way for greater action by the ECB to hold down bond yields.

The Dow Jones industrial average <.DJI> tumbled 198.67 points, or 1.63 percent, to end at 11,997.70. The Standard & Poor's 500 Index <.SPX> fell 26.66 points, or 2.11 percent, to 1,234.35. The Nasdaq Composite Index <.IXIC> lost 52.83 points, or 1.99 percent, to close at 2,596.38.

NYMEX-NEW YORK, Dec 8 (Reuters) - U.S. crude futures fell a second consecutive day on Thursday after the European Central Bank dampened expectations for dramatic action to tackle the euro zone region's debt crisis.

After rising more than $1 on supportive U.S. jobless claims data, crude prices fell back when ECB President Mario Draghi discouraged expectations that the bank would step up buying of government bonds if European Union leaders, gathered in Brussels, agreed on moves to strengthen the fiscal union.

On the New York Mercantile Exchange, (month) crude fell $2.15, or 2.14 percent, to settle at $98.34 a barrel. Trading from $97.71 to $101.73.

CBOT-SOYBEANS, Soybean futures on the Chicago Board of Trade ended firm as short-covering ahead of a monthly U.S. government crop report offset pressure from a firmer dollar and weaker crude oil, traders said.

Gains limited as the U.S. dollar firmed and crude oil and equities fell on investor dismay at the European Central Bank's lukewarm support for aggressive action to ease the region's two-year old debt crisis.

USDA reported export sales of U.S. soybeans in the latest week at 795,600 tonnes (old and new crop years combined), above trade estimates for 550,000 to 650,000 tonnes.

FCPO-KUALA LUMPUR, Dec 8 (Reuters) - Malaysian palm oil futures dropped on Thursday as investor doubts grew over European leaders coming to an agreement to tackle a debt crisis in a make-or-break summit this week.

Prices of the vegetable oil have fallen 18 percent so far this year as the two-year euro zone debt crisis continues to deepen although losses have been limited with crude oil above $100 and heavy rains hitting production.

Benchmark February palm oil futures on the Bursa Malaysia Derivatives Exchange settled 1 percent lower to trade at 3,089 ringgit ($990) per tonne.

REGIONAL EQUITIES-KUALA LUMPUR, Dec 8 (Reuters) - Southeast Asian stock markets fell on Thursday, anxious about coming key events in the euro zone and as doubts emerged about the ability of European leaders to agree on a plan to tackle that region's debt crisis.

The emerging sharemarkets were largely dominated by domestic trading of stocks, with late bargain hunting helping erase some losses in Thailand and Indonesia.

Singapore-listed CapitaLand Ltd , Southeast Asia's largest developer, plunged 7.3 percent, while No.2 ranked City Developments Ltd dropped 8.4 percent.

Trader's Highlight

DOW JONES-NEW YORK, Dec 7 (Reuters) - Hopes the euro zone will figure out a solution to its ongoing debt crisis inspired enough buying to push U.S. stocks to a third day of gains on Wednesday in light trading.

Euro zone nations are expected to vote on Friday on an agreement hashed out between Germany and France to tighten fiscal controls for member nation .

The Dow Jones industrial average <.DJI> gained 46.24 points, or 0.38 percent, to 12,196.37. The Standard & Poor's 500 Index <.SPX><.INX> added 2.55 points, or 0.20 percent, to 1,261.02. The Nasdaq Composite Index <.IXIC> shed 0.35 points, or 0.01 percent, to 2,649.21.

NYMEX-NEW YORK, Dec 7 (Reuters) - U.S. crude futures fell on Wednesday in choppy trading as a government report showing crude oil and products stockpiles rose last week and concerns about the euro zone debt problems pressured oil prices.

U.S. crude inventories rose 1.34 million barrels in the week to Dec. 2, the U.S. Energy Information Administration's weekly report said on Wednesday, more than analysts expected.

On the New York Mercantile Exchange, January crude fell 79 cents, or 0.78 percent, to settle at $100.49 a barrel, having traded from $99.67 to $101.94.

CBOT-SOYBEANS, Chicago Board of Trade soybean futures closed firm on concern about forecasts for drier weather in South American crop areas.

In Argentina, showers were limited to northwest fringes on Tuesday and will only be scattered through southern and western areas this weekend. The northeastern third of the corn and soybean belt may see some expanding moisture deficits by late in the month, particularly Santa Fe, Entre Rios and northeastern Buenos Aires - Commodity Weather Group.

Malaysian palm oil stocks likely fell for a second consecutive month in November, with the decline in production outpacing the drop in exports, a Reuters survey of seven plantation houses showed.

REGIONAL EQUITIES-KUALA LUMPUR, Dec 7 (Reuters) - Most Southeast Asian stock markets rose on Wednesday on optimism that European leaders will take strong steps to resolve the region's debt crisis at a summit later this week.

Buyers looked for counters which were expected to show resilience in the face of global economic weakness, especially those which have been left with undemanding valuations after recent losses, brokers said.

Asian shares and the euro gained on Wednesday on hopes that the threat of mass credit rating downgrades will pressure European leaders to come up with a convincing framework for resolving the euro zone debt crisis at a crucial summit later this week.

Among individual stocks, Singapore property developer CapitaLand Ltd rose 2.4 percent, buoyed by hopes it could benefit from spinning off of its assets into trusts and as its valuations looked cheaper than its peers.