Trader's Highlight

DJI-NEW YORK, Oct 20 (Reuters) - Wall Street bounced back on Wednesday as a fall in the dollar spurred buying in industrial and commodity-linked shares, while another batch of strong corporate earnings added to gains.

Equities and the greenback have had an inverse relationship lately because the Federal Reserve's ultra-low interest rate policy has led investors to buy riskier assets like stocks and commodities.

The Dow Jones industrial average <.DJI> gained 129.35 points, or 1.18 percent, to 11,107.97. The Standard & Poor's 500 Index <.SPX> rose 12.27 points, or 1.05 percent, to 1,178.17. The Nasdaq Composite Index <.IXIC> added 20.44 points, or 0.84 percent, to 2,457.39.

NYMEX-NEW YORK, Oct 20 (Reuters) - U.S. crude oil futures prices rose on Wednesday on a weaker dollar and as equities markets bounced a day after share and commodities prices were pressured after China raised interest rates to cool inflation in its booming economy.

Oil investors awaited oil inventory data from the U.S. Energy Information Administration on the day the NYMEX November crude contract expires.

On the New York Mercantile Exchange, November crude rose 71 cents, or 0.9 percent, to $80.20 a barrel at 8:22 a.m. EDT (1222 GMT), trading from $79.35 to $80.63.

CBOT-CHICAGO, Oct 20 (Reuters) - Chicago Board of Trade grain and soy complex close on Wednesday.

CBOT-SOYBEANS - November up 32 cents at $12.12 per bushel; January up 32-1/4 cents at $12.23-3/4. Rallied to 14-month high as china kept buying U.S. soy and dollar slid. New contract high set.

CBOT-SOYOIL - December up 1.37 cents at 48.47 cents per lb. Support from rally in soybeans and gains in crude oil. Rallied to new contract highs.

FCPO-KUALA LUMPUR, Oct 20 (Reuters) - Palm oil futures hit a new 27-month high and other vegetable markets gained as traders banked on strong export demand from China despite the country's central bank raising interest rates.

Malaysia's January 2011 palm oil contract jumped as much as 2.3 percent to 2,985 ringgit ($960.7) per tonne, trading at a level unseen since August 2008 and hovering just below the crucial 3,000 ringgit level.

Traded volume almost doubled to 19,252 lots of 25 tonnes from each the usual 10,000 lots as traders put aside concerns that China's demand would stall in the country's efforts to tighten credit.

The most active May soyoil futures on China's Dalian Commodity Exchange ended down just 0.4 percent at 8,980 yuan ($1,352) a tonne, after falling to over a month low of 8,812 yuan earlier in the day.

REGIONAL EQUITIES-BANGKOK, Oct 20 (Reuters) - Southeast Asian stock markets fell on Wednesday, feeling the pinch from an unexpected 25 basis point rate increase in China, with weak global commodity prices weighing on resource shares across the region.

However, Asian stocks in general pared early losses after the initial shock from China's first rate rise in nearly three years, which had investors fretting it may be embarking on a tightening cycle.

Singapore's Straits Times Index <.FTSTI> finished down 0.4 percent, Malaysia's main share index <.KLSE> edged down 0.1 percent, Indonesia <.JKSE> fell 0.39 percent and Thailand's SET index <.SETI> fell 0.12 percent.

Breaking News-RTRS - China surprises with first rate rise since 2007

BEIJING, Oct 19 (Reuters) - China's central bank surprised on Tuesday with its first increase of interest rates in nearly three years, a move that reflects concern about resurgent asset prices and could mark the start of a more aggressive phase of monetary tightening in the world's fastest-growing major economy.
The People's Bank of China said it was raising benchmark rates by 25 basis points, taking one-year deposit rates to 2.5 percent and one-year lending rates to 5.56 percent.
If there was ever any doubt about China's role in driving the stuttering global economic recovery, the impact was felt by markets across the board. Oil and gold prices tumbled, stocks turned negative in Europe and the dollar jumped.

Trader's Highlight

DJI-NEW YORK, Oct 19 (Reuters) - U.S. stocks posted their biggest loss in two months on Tuesday on fears banks might be on the hook for billions of dollars in souring mortgage bonds.

The afternoon selloff hit investors already reeling from an unexpected credit tightening by China and disappointing financial results from Apple and IBM .

The biggest scare came on news that Bank of America and possibly others may be forced to take back billions of dollars in mortgages that should not have been bundled into bonds.

The Dow Jones industrial average <.DJI> dropped 165.07 points, or 1.48 percent, to 10,978.62. The Standard & Poor's 500 Index <.SPX> lost 18.81 points, or 1.59 percent, to 1,165.90. The Nasdaq Composite Index <.IXIC> fell 43.71 points, or 1.76 percent, to 2,436.95.

NYMEX-NEW YORK, Oct 19 (Reuters) - U.S. crude oil futures ended more than 4 percent lower on Tuesday, suffering the biggest one-day percentage loss in more than eight months, as the dollar strengthened on safe-haven buying following a surprise interest rate increase in China.

Investors fear the move could dampen Chinese and global growth and slow the country's voracious demand for oil and other commodities.

Crude futures fell back after rising more than 2 percent on Monday, lifted by higher refined products futures as strikes in France continued to affect fuel production and oil shipping.

On the New York Mercantile Exchange, November crude settled at $79.49 a barrel, falling $3.59, or 4.32 percent. The November contract expires on Wednesday.

CBOT-CHICAGO, Oct 19 (Reuters) - Chicago Board of Trade grain and soy complex close on Tuesday.

CBOT-SOYBEANS - November down 4 cents at $11.80 per bushel; January down 3-1/2 at $11.91-1/2. Hit by soaring dollar, lower crude oil and stock market in addition to weight from active harvest of a likely record large U.S. soybean crop.

CBOT-SOYOIL - December down 0.56 cent at 47.10 cents per lb. Losing ground to soymeal on meal/oil spreads; declines in crude oil add pressure.

FCPO-KUALA LUMPUR, Oct 19 (Reuters) - Malaysian palm oil rose on Tuesday along with other vegetable oil markets, although a firmer U.S. dollar and concerns of growing stocks weighed on prices.

Palm oil has rallied in the past week and come within striking distance of the 3,000 ringgit level after the U.S. government cut its soybean crop forecast and the dollar weakened. That rally may have been overdone, traders said.

Technicals are not very promising either. A Reuters analysis showed palm oil is likely to trade at 2,849 ringgit per tonne.

Malaysia's benchmark January palm oil futures climbed more than 1 percent to trade at 2,919 Malaysian ringgit ($944.6). Traded volume rose to 18,175 lots of 25 tonnes each from the usual 10,000 lots.

REGIONAL EQUITIES-BANGKOK, Oct 19 (Reuters) - Most Southeast Asian stock markets rose on Tuesday as investors bought into growing sectors but the region saw some foreign money flow out despite the prospect of further U.S. monetary easing.

With the results season for Southeast Asian firms beginning, Thailand <.SETI> clawed back from a one-week low on Monday thanks to buying in banks, while the indexes of Singapore <.FTSTI>, Malaysia <.KLSE> and Indonesia <.JKSE> eked out small gains.

Despite the gain, Jakarta recorded $147.7 million in outflows on the day, the biggest this year, according to Thomson Reuters data.

In Singapore, medium-caps led gainers, with casino operator Genting Singapore Plc rising 2.4 percent, while in Malaysia financial firm RHB Capital Bhd jumped 2.3 percent.

Trader's Highlight

DJI-NEW YORK, Oct 18 (Reuters) - U.S. stocks rose on Monday, led by gains in financials as Citigroup reported stronger-than-expected profits and concerns eased about the sector's potential exposure to foreclosure problems.

"The financials last week were getting hammered over questions over foreclosure proceedings ... now it doesn't seem to be as all-encompassing," said Marc Pado, U.S. market strategist at Cantor Fitzgerald & Co in San Francisco.

Corporate results so far suggest "the banks are slowly getting better, getting repaired. And I think that's been the game plan all along," he said.

The Dow Jones industrial average <.DJI> was up 47.15 points, or 0.43 percent, at 11,109.93. The Standard & Poor's 500 Index <.SPX> added 3.48 points, or 0.30 percent, at 1,179.67. The Nasdaq Composite Index <.IXIC> inched up 1.19 points, or 0.05 percent, at 2,469.96.

NYMEX-NEW YORK, Oct 18 (Reuters) - U.S. crude oil futures ended 2.25 percent higher on Monday, the biggest one-day gain in two weeks, lifted as refined product futures rose on prolonged strikes in France that have hit shipping and refineries.

In early trading, the dollar's strength had pressured oil, but the greenback later gave up gains against the euro and a basket of currencies <.DXY> adding spring to the oil price bounce.

On the New York Mercantile Exchange, crude for November delivery rebounded from Friday's loss and settled $1.83 higher, or 2.25 percent, at $83.08 a barrel, trading from $80.35 to $83.18. The day's gain was the highest since front-month prices rose 2.71 percent on Sept. 30.

CBOT-CHICAGO, Oct 18 (Reuters) - Chicago Board of Trade grain and soybean complex close on Monday.

CBOT- SOYBEAN - November down 1 cent at $11.84 a bushel; January down 3/4 at $11.95. Pressured by active U.S. soybean harvest and profit-taking amid overbought technicals, along with better crop weather in South America. But strong export demand and bullish weekly inspections data underpin market and deferred months ended firm as the market begins to buy soy acreage for 2011.

CBOT - SOYOIL - December down 0.11 cent at 47.66 cents per lb.

FCPO-KUALA LUMPUR, Oct 18 (Reuters) - Malaysian palm oil fell to its lowest in a week and other vegetable oil prices stalled as a stronger dollar and more favourable weather outlooks in South America sapped sentiment.

Palm oil -- which was within striking distance of the 3,000 ringgit level last hit in August 2008 -- came under pressure from some technical selling and weaker-than expected exports in October.

Malaysia's benchmark January 2011 palm oil contract ended 1.6 percent lower at 2,889 ringgit ($937.4) after going as a low as 2,877 ringgit --- a level last traded on Oct. 11.

REGIONAL EQUITIES-BANGKOK, Oct 18 (Reuters) - Southeast Asian stock markets fell on Monday as investors cashed in recent gains, with expectations of a new round of U.S. monetary easing generally already priced in.

Equities indexes in Singapore <.FTSTI> and Malaysia <.KLSE> came off multi-year highs hit last week. Indonesia <.JKSE> fell 0.8 percent while the Philippines <.PSI> was flat, both having recently hit record highs.

U.S. Federal Reserve chief Ben Bernanke cemented expectations on Friday of more U.S. stimulus to fend off deflation, prompting a reversal of trades that had been pushing the dollar lower and most Asian stocks higher for weeks.

In Southeast Asia, selling hit commodity-related shares, which had led the recent rally. Malaysia's top power producer, Tenaga Nasional , lost 1.2 percent, while Thailand's biggest energy firm, PTT , dropped 1.6 percent.

Singapore-listed Wilmar International Ltd. , the world's largest listed palm oil firm, was down 1.1 percent while Philippine geothermal power firm Energy Development Corp was 2 percent lower.