* MSCI world equity index down 0.17 pct at 341.00
* U.S. crude futures hit 2-1/2 year high; Brent rises
* Euro rises broadly on hawkish ECB talk
By Natsuko Waki
LONDON, Feb 23 (Reuters) - World stocks fell further from a
recent 30-month high on Wednesday while the euro rose as unrest
in Libya drove oil higher and fanned concerns about inflation
that could hamper a global economic recovery.
Wall Street suffered its worst day since August on Tuesday
as the turmoil in oil exporter Libya gave investors an excuse to
sell stocks and consolidate positions after a rally that has
driven world stocks 6 percent higher this year.
The spike in oil prices comes at a time when many
fast-growing emerging economies already face rising price
pressure and the need to raise interest rates.
European Central Bank officials also stressed they stand
ready to fight inflation with tighter monetary policy on
Tuesday, prompting interest rate futures to bring forward
expectations for a quarter point interest rate hike to August.
"There's an awful lot of things to worry about at the moment
... and the Libya situation just adds to it, boosting the oil
price and stoking inflationary concerns," said David Morrison,
market strategist at GFT Global.
The MSCI world equity index <.MIWD00000PUS> was down 0.15
percent, falling more than 2 percent from Monday's peak. The
Thomson Reuters global stock index <.TRXFLDGLPU> was down 0.15
percent on the day.
U.S. stock futures were up around 0.4 percent <SPc1>,
pointing to a firmer open on Wall Street later.
The FTSEurofirst 300 index <> fell a quarter percent.
Oil companies with operations in the Middle East fell, including
BP <BP.L> and Royal Dutch Shell <RDSa.L>, down 1.2 and 0.8
percent respectively.
Emerging stocks <.MSCIEF> lost 0.4 percent.
OIL RISK
Popular protests have toppled entrenched leaders in Egypt
and Tunisia, but Libya's defiant leader Muammar Gaddafi said he
would not be forced out by the unrest sweeping Africa's
third-largest oil producer. []
At least three oil companies have halted output in Libya,
which pumps 1.6 million barrels per day, or nearly 2 percent of
global supply. []
Brent crude futures <LCOc1> rose to $107.30 a barrel, having
hit a 2-1/2-year high of $108.70 on Monday. U.S. crude futures
<CLc1> were 57 cents firmer at $95.99 a barrel, near the highest
level since October 2008.
The euro rose 0.6 percent to $1.3735 <EUR=>. Luxembourg's
Yves Mersch and Nout Wellink of the Netherlands both said on
Tuesday the ECB was ready to fight inflation by increasing
interest rates when needed -- adding to a series of warnings
from the bank's policymakers this year.
"The associated warning about the risks of distortions from
excessively low interest rates might not have been a clarion
call for higher rates, but again highlight the clear divergence
with the approach of the Fed," said David Watt, strategist at
RBC Dominion Securities.
"These comments overshadowed concerns about the EU
periphery."
The dollar <.DXY> fell 0.4 percent against a basket of major
currencies.
Bund futures <FGBLc1> were steady on the day.
(Editing by Stephen Nisbet)
