* FTSEurofirst 300 <> down 1.1 percent
* Worries of spread of Middle East unrest lift oil price
* Swiss Re falls after NZ claims estimate
* For up-to-the minute market news, click on []
By Harpreet Bhal
LONDON, March 2 (Reuters) - European shares fell on
Wednesday on mounting worries political unrest in the oil-rich
Middle East and North Africa region could result in persistently
high energy prices and derail global economic recovery.
By 0933 GMT, the pan-European FTSEurofirst 300 <>
index of top shares was down 1.1 percent at 1,148.83 points,
adding to Tuesday's 0.6 percent fall.
Brent crude <LCOc1> rose above $115 a barrel to 2-1/2 year
highs on continued tension in Libya. []
Rising crude prices took its toll on automakers and airline
companies, with Daimler <DAIGn.DE> and Lufthansa <LHAG.DE> among
the biggest decliners, down 3.7 percent and 2.2 percent
respectively.
"I would not particularly want to be in the airlines at the
moment or Thomas Cook <TCG.L> or any sectors that are
particularly affected by the oil prices," a London-based fund
manager said. "The next stage on from that is if oil price does
stay at these levels, we would look at the effects on U.S.
growth and U.S. consumers and stocks related to that sector."
KBC Securities Bolero strategist Koen de Leus in Brussels
said: "If crude prices are going to go up to $125-$130 a barrel
then I think that more and more of the consumption expenditure
in the U.S. is going to have to be spent on gasoline and can't
be spent on other durable goods".
VOLATILITY CREEPS UP
Two U.S. warships were passing through the Suez Canal on
their way to waters off Libya as Western nations exerted
pressure on Muammar Gaddafi to step down. []
Worries intensified that political uprising could spread to
major oil producers such as Iran or Saudi Arabia, hitting energy
supplies needed to power global growth.
Saudi Arabia's benchmark stock index <.TASI> hit a 22-month
low as fears of sectarian strife grew after human rights
activists said authorities had detained a Shi'ite cleric, and as
activists set up Facebook pages calling for protests on March 11
and 20. [] []
The sell-off in European equities coincided with a rise in
the VDAX-NEW volatility index <.V1XI>, one of Europe's main
barometers of investor anxiety, to a one-week high, highlighting
investors jitters over the ongoing political uncertainty in the
Middle East and North Africa.
The higher the volatility index, based on sell and buy
options on Frankfurt's top-30 stocks <0#.GDAXI>, the lower
investor appetite for risky assets such as stocks.
"You see there were some troubles in Iran as well, which is
also an important producer of oil. Gold prices are around record
highs so it really points to the fact that people are very
worried about the situation," De Leus said.
Among the biggest decliners, Swiss Re <RUKN.VX> fell 2.5
percent after the reinsurer said claims from the recent
earthquake in New Zealand would cost it around 800 million Swiss
francs, meaning 2011 could become a high claims year overall.
Despite the broad slide in the market, positive outlooks
from individual companies helped selected shares push higher.
Standard Chartered <STAN.L> rose 2.5 percent after the
Asia-focused lender's year profit met expectations and it said
it expected revenue to grow at least 10 percent this year and
beyond. []
German sports outfitter Adidas <ADSGn.DE> rose 1.9 percent
after the group increased its sales goal for 2011 on emerging
markets growth. []
(Reporting by Harpreet Bhal; Editing by Dan Lalor)
