Gulf traders express concern as the Middle East upheaval escalates. JEDDAH/NEW YORK: World stocks fell Tuesday as a growing revolt in Libya drove crude prices to 30-month highs, prompting fears the unrest could spread to other major oil suppliers in the region and harm global growth. Gold prices slipped but remained above $1,400 an ounce as the dollar surrendered its earlier 1 percent gains versus the euro, as concerns about oil supplies cooled the appetite for assets perceived as risky and drove investors into safe-haven assets such as bullion and government debt. Spot gold prices fell $1.80 to $1,404.10 an ounce. “The uncertain and scary geopolitical landscape is taking center stage in the global markets,” said Justin Lederer, Treasury analyst at Cantor Fitzgerald in New York. Global stocks, as measured by MSCI's all-country world index, fell 1.1 percent and the pan-European FTSEurofirst 300 index of top shares provisionally closed 0.5 percent lower. Wall Street extended losses Tuesday, with the Dow Jones industrial average dropping 168.20 points, or 1.36 percent, to 12,223.05. The Standard & Poor's 500 Index lost 25.40 points, or 1.89 percent, to 1,317.61. The Nasdaq Composite Index fell 68.54 points, or 2.42 percent, to 2,765.41. European stock markets closed lower Tuesday, with London's FTSE 100 index of leading shares down 0.30 percent at 5,996.76 points. In Paris, the CAC 40 fell 1.15 percent to 4,050.27 points but in Frankfurt the DAX held up better, slipping only 0.05 percent to 7,318.35 points. The euro rose versus the dollar as hawkish comments from a European Central Bank official helped it pare earlier steep losses as escalating violence in Libya prompted investors to seek safer assets. The euro was up 0.09 percent at $1.3663, and against the Japanese yen, the dollar was down 0.2 percent at 82.94. Saudi Arabia's Tadawul dropped 0.35 percent to 6,277.03 points. Dubai's DFM General Index declined 2.4 percent to 1,479.41, the lowest since Aug. 16. Abu Dhabi's ADX General Index retreated 1.6 percent, Oman's MSM30 Index fell 1.5 percent and Kuwait's measure slipped 0.1 percent. Qatar's QE Index tumbled 3.6 percent, the most since May 25, to 8,185.24 However, Bahrain's BB All Share Index gained for the first time in three days, rising 0.2 percent. Tunisia's Tunindex retreated 0.9 percent, bringing the drop since the ouster of the North African country's president on Jan. 14 to 3.1 percent. Morocco's credit-default swaps soared to 205. The yield on Dubai's five-year note maturing in October 2015 climbed 10 basis points to 7.08 percent. Asian shares fell sharply Tuesday, battered by ongoing unrest in the Middle East, an earthquake in New Zealand and a downgrade of Japan's credit rating outlook. The Nikkei 225 stock average shed almost 2 percent to 10,644.38, Hong Kong's Hang Seng index lost 1.7 percent to 23,077.27, and South Korea's Kospi was down 2.2 percent at 1,960.15.
