GLOBAL MARKETS-Oil gains, stocks fall as Libya spurs growth fear

                                
  
                                
 * U.S. crude at 30-month highs on fear unrest may spread
                                
 * Global stocks fall as oil concerns prompt growth worries
                                
 * Swiss franc gains against dollar on safe-haven buying
                                
 * Government debt prices jump due to safe-haven status
 (Adds fresh prices)
                                
 By Herbert Lash
                                
 NEW YORK, Feb 22 (Reuters) - World stocks tumbled on
Tuesday as revolt in Libya drove crude prices to 30-month highs
and kindled fears of slower global growth if the unrest spreads
to other major oil-exporting countries in the region.
                                
 Crude prices surged in New York and London, where prices
for North Sea Brent <LCOc1> touched $108.57 a barrel before
trimming most gains after Saudi Arabia said the Organization of
Petroleum Exporting Countries would meet any supply shortages.
For details seen [ID:nN22284303]
                                
 Libya declared force majeure on all oil product exports as
political violence shut more than 13 percent of the country's
1.6 million barrels per day of crude production.
                                
 The Swiss franc, traditionally sought in times of
heightened geopolitical tension, firmly gained against the euro
as concerns about oil supplies cooled risk appetites and sent
investors into safe-haven assets such government debt.
                                
 A defiant Muammar Gaddafi vowed to die "a martyr" in Libya
and said he would crush a revolt which has seen eastern regions
already break free from four decades of his rule.
[ID:nL3E7DM0K1]
                                
 Libya ranks third in Africa after Nigeria and Angola in oil
production and investors are concerned that the spread of
violence in North Africa and the Middle East could disrupt the
supply of regional oil exports.
                                
 U.S. crude for March delivery <CLH1>, which expired at the
close, settled up $7.37 at $93.57 a barrel. The day's trading
included business done electronically on Monday, when floor
trade was shut due to the U.S. Presidents Day holiday.
                                
 In London, Brent crude oil futures settled up 4 cents at
$105.78 a barrel, its highest close since September 2008.
                                
 "The major underlying fear in the market is that these
protests spread in the region to even larger producers like
Saudi Arabia," said Andy Lebow, a trader at MF Global in New
York. "While that might not look likely right now, even a hint
of real problems there could send prices vertical."
                                
 Global stocks, as measured by MSCI's all-country world
index <.MIWD00000PUS>, fell 1.7 percent and most of Wall Street
fell more than 2 percent.
                                
 The Dow Jones industrial average <.DJI> closed down 178.38
points, or 1.44 percent, at 12,212.87, according to preliminary
figures. The Standard & Poor's 500 Index <.SPX> fell 27.58
points, or 2.05 percent, at 1,315.43. The Nasdaq Composite
Index <.IXIC> dropped 77.28 points, or 2.73 percent, at
2,756.67.
                                
 Higher oil prices hit certain stocks on concerns of higher
fuel costs. The Arca airline index <.XAL> fell 5.5 percent.
                                
 Stocks resisted further decline for most of day after data
showing U.S. consumer confidence rose to a three-year high in
February. But a drop in home prices for the sixth month in a
row in December suggested the economy still faces significant
hurdles. [ID:nN22277393]
                                
 The Swiss currency rallied about 1 percent versus both the
euro and U.S. dollar.
                                
 The euro <EUR=> was down 0.15 percent at $1.3654, and
against the Japanese yen, the dollar <JPY=> was down 0.43
percent at 82.75.
                                
 "Libya is the obvious theme today, so you have a little bit
of safe-haven trading," said Fabian Eliasson, vice president of
currency sales at Mizuho Corporate Bank in New York.
                                
 U.S. Treasury debt prices rose, boosted by Libya-sparked
safe-haven buying, and some analysts anticipate further price
gains on expectations that economic growth will wane.
[ID:nN22297576]
                                
 The price of the 30-year U.S. Treasury bond <US30YT=RR>
rose more than a full point and the benchmark 10-year rose a
full point as the unrest in Libya prompted investors to swap
riskier assets for safe-haven bonds. [ID:nNYD003766]
                                
 The 10-year U.S. Treasury note <US10YT=RR> was up 1-1/32 in
price to yield 3.46 percent, while the 30-year bond last traded
1-14/32 higher in price to yield 4.60 percent.
                                
 Spot gold prices edged under $1,400 an ounce, breaking a
six-session rally, as bullion investors took profits and as
sharp losses in equities and other commodities prompted margin
selling. [ID:nLDE71L0WD]
                                
 U.S. gold futures for April delivery <GCJ1> settled up
$12.50 at $1,401.10 an ounce, in gains that were largely due
from the Presidents Day closing of markets on Monday.
 (Additional reporting by Edward Krudy, Gertrude
Chavez-Dreyfuss, Chris Reese and Julie Haviv in New York;
Writing by Herbert Lash, Editing by Andrew Hay and Chizu
Nomiyama)