World sharemarkets fall as oil tops $US100

Stocks on Wall Street fell for a third day as oil prices rose above $US100 a barrel, fuelling fears inflation would stifle economic growth.

Worries that turmoil in Libya will spread and cause more disruptions to oil supplies sent most world sharemarkets down.

After losing more than 100 points during the session, the Dow Jones Industrial Average rebounded late in the day as oil prices eased on reports the International Energy Agency would release emergency stockiles. At the close (10am NZ time), the Dow was down 37.28 points, or 0.3%, to 12,068.50.

The Nasdaq Composite rose 0.55% to 2737.90 and the S&P 500 index fell 0.1% to 1306.10, after earlier dropping below the important 13,000 benchmark.

Other markets: Europe, Asia down
German stocks bore the brunt of widespread losses in Europe. The Stoxx Europe 600 index was down 0.6% to 280.56, its fifth consecutive loss.

In Frankfurt, the DAX was down 0.9% 7130.50, in London, the FTSE 100 index eased 0.3% to 5919.98, in Paris, the CAC 40 index shed 0.2% to 4009.64.

Most Asian stockmarkets fell. Japan's Nikkei Stock Average fell 1.2% 10,452.71, Australia's S&P/ASX 200 gave up 0.8% 4809.35, Hong Kong's Hang Seng index dropped 1.3% 22,601, Korea's Kospi lost 0.6% to 1949.88 and India's Sensex tumbled 3% 17,632.41.

China's Shanghai Composite index rose 0.6% 2878.60, advancing on the back of oil and coal shares, while Taiwan's Taiex added 0.2% to 8541.64.

Commodities: Oil, gold up
Crude-oil futures traded above $US100 a barrel in New York, pulled higher by a decline in Libya's oil output. Light, sweet crude for April delivery traded as high as $US103.41 a barrel, the highest since September 2008.

Reports of higher inventory stocks curbed further rises with the contract dropping to $US99.15 a barrel. Brent crude on the ICE futures exchange rose $US2.56 to $US113.81 a barrel after hitting a 2½-year high of $US119.79.

Gold prices are steady as investors wait for new developments from Libya. Gold for April delivery touched $US1418.80 an ounce but, trailing oil, the rise has been pared back to.$US1413.20 an ounce in New York.

Currencies: Dollar down, yen up
The US dollar slumped against other currencies as Middle East turmoil, a surge in oil prices and expectations of interest-rate rises in Europe dented its appeal as a haven for investors.

Investors have bought "safe haven" currencies like the Swiss franc and Japanese yen. The dollar fell close to a record low against the franc before regaining some strength.

The euro was at $US1.3747 from $US1.3654 late on Tuesday. The dollar traded at ¥82.51 from ¥82.77, while the euro was at ¥113.42 from ¥113.01. The UK pound fetched $US1.6208 from $US1.6130. The dollar was at 0.9335 Swiss franc from 0.9386 franc.