DJI- NEW YORK, May 21 (Reuters) - Global stocks on Monday rebounded from lows for the year and oil prices rose for the first time in four sessions as world leaders emphasized support for growth in the euro zone, and China said priority should be given to maintaining its economic expansion.
Still, most investors and analysts see the pause in selling of stocks, oil and other commodities as temporary, given the uncertainties ahead for Greece, which holds national elections on June 17.
Risk that Greece might leave the euro zone curbed a recovery for the euro, which stabilized above its lowest level in about four months.
On Saturday, leaders of the Group of Eight nations stressed that their "imperative is to promote growth and jobs" for the euro zone, and expressed support for Greece to stay in the euro.
Despite calls from the United States for immediate moves to boost growth, no sign emerged that Germany would soften its stance on austerity as the cure for Europe's debt problems. [ID:nL1E8GK46A]
"We're in a bit of an oversold bounce in here at the moment and whether we're going to build on all of this we'll find outthis week. We'll still be hostage to European news and will be for the foreseeable future," said Frank Lesh, a futures analyst and broker at FuturePath Trading LLC in Chicago.
The absence of negative news from Europe revived some appetite for U.S. equities despite a selloff of Facebook shares following its lackluster debut on Friday. [.N]
The Dow Jones industrial average <.DJI> gained 135.10 points, or 1.09 percent, to close at 12,504.48. The Standard & Poor's 500 Index <.SPX> rose 20.77 points, or 1.60 percent, to finish at 1,315.99. The Nasdaq Composite Index <.IXIC> advanced 68.42 points, or 2.46 percent, to close at 2,847.21.
U.S. stocks came off their worst weekly loss in a year as Facebook's sloppy debut on Friday disappointed investors. The social networking company's stock lost 11 percent on Monday to close at $34.03 on Monday. It fell as low as $33 - $5 below its initial offering price, wiping out $10 billion of its market value.
While Facebook shares faded after much fanfare, established technology companies did better, led by Apple Inc whose shares rose 5.8 percent to $561.28.
Spain's prime minister said on Monday that urgent solutions were needed to guarantee financial stability in Europe. [ID:nL5E8GLD9A] On Friday, Spain revised upward its estimated 2011 budget deficit.
Spanish benchmark 10-year bond yields held at 6.29 percent, while the 10-year Italian debt yield was flat at 5.94 percent. These long-term borrowing costs are seen as unsustainable for the euro zone's fourth- and third-largest economies, respectively.
The euro rose 0.25 percent in choppy trading to $1.2814, well above Friday's four-month low of $1.2642 , which was not far from its lowest point for 2012. [FRX/]
The dollar index <.DXY> slipped 0.43 percent to 80.941 after touching its highest level since mid-January on Friday on heavy bids for the U.S. currency and other perceived safe-haven assets.
Nagging jitters over the financial contagion from the festering debt problem in Europe offset earlier profit-taking on U.S. and German government debt.
NYMEX- NEW YORK, May 21 (Reuters) - U.S. crude oil futures ended more than 1 percent higher on Monday, snapping a six-session losing streak, on hopes of more economic stimulus in China, and in reaction to G8 leaders wanting to keep Greece in the euro zone while keeping pressure to Iran over its disputed nuclear program.
Crude oil bounced after the market had became oversold during the recent extended price slide, Reuters data showed.
Traders will look for fundamental guidance on Tuesday when the industry group American Petroleum Institute issues its weekly petroleum inventory report. That will be followed on Wednesday by the federal Energy Information Administration's weekly report.
Ahead of those reports, a Reuters poll of analysts forecast that domestic crude inventories rose 1.0 million barrels last week, rising for the ninth straight week. Distillates and gasoline stocks were forecast unchanged from the previous week's level. [EIA/S]
* On the New York Mercantile Exchange, crude for June delivery , which expires on Tuesday, settled at $92.57 a barrel, up $1.09, or 1.19 percent.
* U.S. crude's Relative Strength Index (RSI) rose to 27.496 from 21.366 on Friday. The index fell below 30, the level indicating oversold conditions, beginning May 11, when it hit 29.799, according to Reuters data.
* In London, ICE Brent crude for July delivery settled at $108.81 a barrel, rising $1.67, or 1.56 percent. Just before settlement, it climbed $2 and later posted the day's high at $109.22, up $2.08, or 1.94 percent. In early trade, it hit a session low of $106.75.
* July Brent's premium against the U.S. July crude contract widened to $15.95 at the close, from $15.55 on Friday.
* Volumes were slim, with U.S. crude dealings about 29 percent below its 30-day average and Brent down 33 percent from its 30-day average, according to Reuters data.
* Iran plans a new oil terminal outside the Strait of Hormuz to protect its exports against potential problems in the Gulf and to increase shipments of Caspian oil, the oil ministry said. [ID:nL5E8GL82Z]
CBOT SOYBEAN- Spot soybean futures on the Chicago Board of Trade closed 0.6 percent higher on Monday and back months had greater gains amid concerns hot and dry weather may limit 2012 U.S. soybean crop prospects, traders said.
* Soy July soybeans turned positive after falling 2.3 percent on Friday amid long liquidation of outright positions and bull spreads.
* Soybeans were supported by ideas that dry conditions in southern areas of the U.S. Plains and Midwest may limit planting of double-crop soybeans, which are typically seeded on winter wheat fields immediately after the wheat is harvested.
* Drier-than-normal weather is expected in much of the U.S. Midwest crop belt for the next week to 10 days, while above-average rainfall is seen for the northwest Midwest and the northern Plains, said John Dee, meteorologist for Global Weather Monitoring.
* Traders expect USDA's crop progress report due at 3 p.m. CDT (2000 GMT) to show U.S. soybean plantings at 68 percent complete, up from 46 percent the previous week. [ID:nL1E8GLA1A]
* USDA reported export inspections of U.S. soybeans in the latest week at 12.684 million bushels, below trade expectations for 14 million to 18 million bushels.
* The CIF soybean basis for soybeans shipped by barge to the U.S. Gulf Coast was steady to firm on Monday, supported by thin supplies in the export pipeline. [ID:nL1E8GL5SJ]
* The CFTC's supplemental report on Friday showed large speculators cut their near-record net long in CBOT soybeans for a second straight week. [ID:nEMS30DEWJ]
FCPO- SINGAPORE, May 21 (Reuters) - Malaysian palm oil futures edged up on Monday on improving exports, although gains were capped as investors remained wary over uncertainty surrounding the euro zone.
Malaysian palm oil exports for May 1-20 rose from a month ago, reflecting slightly better demand for the edible oil, according to cargo surveyor data. [PALM/ITS][PALM/SGS]
Futures hit a five-month low at 3,034 ringgit on Friday, ending a volatile trading week when the market suffered a 5.5 percent loss on concerns about contagion from the Greek political turmoil.
"Prices are poised to recover after the recent sell-off. It was oversold and a little divorced from fundamentals. Demand is creeping back and (supply) situation remains tight," said a trader with a local commodities brokerage in Malaysia.
Benchmark August palm oil futures on the Bursa Malaysia Derivatives Exchange inched up 0.1 percent to close at 3,098 ringgit ($998) per tonne. Prices touched 3,034 ringgit on Friday, a level last seen on Dec. 21 last year.
Traded volumes stood at 42,462 lots of 25 tonnes each, much higher than the usual 25,000 lots, on increased hedging activities.
On the technicals front, palm oil will consolidate in a range of 3,019-3,136 ringgit per tonne for one or more trading sessions, before dropping below it, said Reuters market analyst Wang Tao. [ID:nL4E8GL1AY]
On the demand side, exports inched up 2.1 percent to 862,337 tonnes for the first 20 days of the month, thanks mainly to slightly better shipments to India, said cargo surveyor Intertek Testing Services.
Another cargo surveyor, Societe Generale de Surveillance, reported a slightly higher 3.1 percent rise in exports for the same period.
Temperatures are set to rise in the southern portion of the Midwest grain belt in the United States, which produces the country's bulk of corn and soybeans, raising expectations of tighter soybean supply. [ID:nL4E8GL17T]
REGIONAL EQUITY-BANGKOK, May 21 (Reuters) - Southeast Asian stock markets were broadly higher on Monday on buying by investors after sell-offs in recent days, but gains were limited by worries over Europe's debt crisis.
Vietnamese stocks <.VNI> closed 3 percent higher, with its 14-day relative strength index (RSI) at 41.5, bouncing from 30.7 on Friday. A level of 30 or lower indicates the market is oversold.
Among the oversold markets, shares in Singapore posted a modest gain of 0.4 percent, with the 14-day RSI of Singapore's Straits Times Index closing at 25.4, compared with 22.2 on Friday.
The Thai stock market bucked the trend, though, dragged 1.7 percent lower by shares of energy firms as investors worried about the impact of weak oil markets on earnings.
The index of heavyweight energy firms <.SETEN> was down 2.4 percent.
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