* Oil gains as Libyan unrest helps push prices higher
* Euro, sterling advance on prospects of rate increase
* U.S. bonds mostly ease in profit-taking before auction
(Adds open of U.S. markets, byline, dateline)
By Herbert Lash and Natsuko Waki
NEW YORK/LONDON, Feb 23 (Reuters) - World stocks slid
further from recent 30-month highs on Wednesday as violence in
Libya pushed oil prices higher while fanning concerns about
inflation and the global economic recovery.
On Wall Street the Dow was slightly lower a day after
stocks' worst session since August, but fears that unrest in
Libya could spread to other oil-producing nations in the region
and choke off exports pressured European equities and pushed
safe-haven government bonds higher.
U.S. light sweet crude oil <CLc1> rose $1.46 to $96.88 a
barrel, the the highest level since October 2008.
The euro and sterling, meanwhile, rose versus the dollar on
expectations that interest rates in the euro zone and Britain
will rise sooner than U.S. rates and likely keep the greenback
under pressure. For details see []
The euro <EUR=> was up 0.53 percent at $1.3725.
Traders said prospects of higher inflation and interest
rates took center stage in currency markets, pushing aside
concerns about political tensions in North Africa.
Copper, often a barometer of economic demand, fell to the
lowest levels in nearly a month on worries inflation could
weigh on the global economic recovery. The metal has slipped
nearly 7 percent from record highs at $10,190 a tonne earlier
in the month []
Much of the market's focus remained on Libya where Muammar
Gaddafi's attempts to crush a revolt against his four-decade
rule have killed as many as 1,000 people, Italy's foreign
minister said. []
"The turmoil is not only about inflation and oil, but it is
affecting equity markets and those safe-haven flows have been
dominating recently," said Glenn Marci, strategist at DZ Bank.
"We might see some calmer markets, but I'm not totally
convinced the rally will stop here," Marci said, referring to
debt instruments.
U.S. Treasuries prices slipped as investors took profits
from Tuesday's safe-haven rally due to North African turmoil
and in an effort to force a price concession before a five-year
debt sale. []
The benchmark 10-year U.S. Treasury note <US10YT=RR> was
down 1/32 in price to yield 3.46 percent.
The MSCI world equity index <.MIWD00000PUS> was down 0.2
percent,
Wall Street was mixed.
The Dow Jones industrial average <> dipped 28.87
points, or 0.24 percent, to 12,183.92. The Standard & Poor's
500 Index <.SPX> edged up 0.65 point, or 0.05 percent, to
1,316.09. The Nasdaq Composite Index <> added 0.45 point,
or 0.02 percent, to 2,756.87.
(Additional reporting by Angela Moon and Chris Reese in New
York; Jessica Mortimer, Zaida Espana, Joanne Frearson, Jan
Harvey and Melanie Burton in London; Writing by Herbert Lash;
Editing by Kenneth Barry)
