Palm | Kelapa Sawit

DOW JONES-NEW YORK, Dec 14 (Reuters) - U.S. stocks fell for a third day and hit their lowest level in two weeks on Wednesday as widespread risk aversion sank commodity prices, sent the euro to an 11-month low against the dollar and drove Italy's borrowing costs to a euro-era high.

Investors are disappointed the European Central Bank is not buying more bonds of troubled European countries, a move that was widely seen as a requisite next step after leaders at last week's EU summit agreed to strengthen fiscal unity in the bloc.

The Dow Jones industrial average <.DJI> dropped 131.46 points, or 1.10 percent, to 11,823.48. The Standard & Poor's 500 Index <.SPX> fell 13.91 points, or 1.13 percent, to 1,211.82. The Nasdaq Composite Index <.IXIC> lost 39.96 points, or 1.55 percent, to 2,539.31.

NYMEX-NEW YORK, Dec 14 (Reuters) - U.S. crude futures fell more than 5 percent on Wednesday, the biggest percentage drop in nearly three months, as revived fears about Europe's debt crisis triggered and a slumping euro triggered technical selling.

The euro fell below $1.30, marking an 11-month low against the U.S. dollar, on worries that the still-unresolved euro zone sovereign debt crisis is leaving little room for potential economic growth.

On the New York Mercantile Exchange, (month) crude fell $5.19, or 5.18 percent, to settle at $94.95 a barrel, trading from $94.21 to $100.33. It was the biggest one-day percentage loss since Sept. 22.

CBOT-SOYBEANS, Soybean futures on the Chicago Board of Trade fell more than 1 percent and touched a 14-month low, joining a broad sell-off in commodities as continued concerns about the euro zone debt crisis lifted the U.S. dollar.

FCPO-JAKARTA, Dec 14 (Reuters) - Palm futures reversed earlier losses to close almost 2 percent higher on Wednesday, as bargain hunters entered the market and comparative oils helped ofset persistent doubts over the euro zone debt crisis.

Traders found additional support from a possible impact on output due to the rainy season in top Southeast Asian producing countries.

Earlier this week, the state weather agency of number one palm producer Indonesia warned of floods in top producing regions Kalimantan and Sumatra.

Exports of Indonesian palm oil for November rose 42.5 percent, according to Reuters calculations based on data from an industry source.

Benchmark February palm oil futures on the Bursa Malaysia Derivatives Exchange ended 1.7 percent higher at 3,051 Malaysian ringgit ($960) per tonne.

REGIONAL EQUITIES-Dec 14 (Reuters) - Most Southeast Asian stock markets closed weaker on Wednesday in light trading volumes after the Federal Reserve warned that turmoil in Europe poses a big threat to the world's biggest economy.

The region's markets, like many others, have been on a downtrend due to concerns over slowing global growth. There's less appetite for risky assets due to the sovereign debt crisis in the euro zone, which investors fear faces downgrades by rating agencies.

The Federal Reserve on Tuesday warned that turmoil in Europe presents a big risk to the U.S. economy, even though it noted a somewhat stronger U.S. labor market.

Indonesia <.JKSE> ended 0.3 percent weaker to a two-week low, Singapore <.FTSTI> fell 0.5 percent to hit its lowest close since Nov. 25, Malaysia <.KLSE> closed 0.2 percent down, and Thailand <.SETI> lost 0.7 percent.

Singapore Telecommunications Ltd and DBS Group Holdings Ltd each fell 0.9 percent, pulling the Singapore market down.

Analysts in Singapore said utilities, some industries and real estate investment trusts (REIT) will be the defensive shares that should be attractive in 2012, while technology shares may underperform.