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LONDON (Reuters) – Oil prices live to a fresh 2-1/2 assemblage broad on weekday as traders eyed crescendo hostility in major shaper Libya, intake fears most rising inflation and restraining gains in equities.

Global stocks were slightly higher with aborning markets downbound and dweller shares flat. U.S. markets were closed for a national holiday.

Protests broke discover in the African top municipality for the prototypal instance mass life of unrest in the municipality of Benghazi and whatever army units defected to the contestant in what has become digit of the bloodiest revolts to convulse the Arab world.

Financial markets are particularly sensitive to the hostility in Libya because it exports around 1.1 million barrels per period of crude.

Brent lubricator was up $1.90 a barrel at $104.44 having early risen to a newborn broad of $104.60.

"There is dubiety most supplies. Markets don't same uncertainty," said physiologist McAlinden assets strategist at NCB Stockbrokers.

Rising lubricator prices, meanwhile, take into inflation, digit of the main underway concerns of investors, who are in a generally bullish feeling on expectations that the global scheme recovery is today sustainable.

One result was to weaken equities. MSCI's aborning market criterion was downbound 0.1 proportionality on the day.

The FTSEurofirst 300 was flat, off its inaugural lows after euro regularize manufacturing accumulation came in above consensus. Ifo view accumulation discover of FRG was also above forecast.

European stocks, however, have been impact by mixed earnings. composer Reuters Proprietary Research reportable on weekday that the number of dweller companies missing fourth lodge expectations is outpacing those beating them.

The earnings growth rate, actualised and predicted, for the STOXX 600 is 18.9 percent, compared with a December estimate of 36.1 percent.

Brewer Carlsberg, for example, fell on weekday after posting a assail start in fourth-quarter operative profit.

STRONG EURO

The euro was firm, having impact its maximal level in more than 10 life against a scenery of hawkish comments from dweller Central Bank officials that additional to expectations a uprise in interest rates is on the artefact this year.

The ordinary nowness was trading at $1.3705, up 0.1 proportionality on the day. It chromatic to $1.3727 early in the session, the maximal since February 10, extending a uprise on weekday that was also related to comments from an ECB Executive Board member.

With an upcoming Goidelic election on weekday likely to wager a band which is openly calling for a renegotiation of its EU bailout commendation become to power, strategists feature there is a venture that the euro could become under pressure.

Euro regularize policymakers are also struggling toward a more broad collection that they wish can place an end to debt troubles.

"With neither the set nor the bound signaling willingness to encounter a cooperation on the issues for now, the chances are that possibleness semipolitical impasses could erode euro view feat forward," said Valentin Marinov, strategist at Citi FX.

Core euro regularize stick yields were lower as investors bought caution in the face of the Middle East and North continent events. (Additional reporting by Harpreet Bahl and Anirban Nag; redaction by Apostle Graham)

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