World markets fall as oil price soars on Libya turmoil

Libya unrest has driven Brent crude oil to a 29-month high of $119, causing Asian markets to fall overnight and European stocks to slump as investors take profits.

In Tokyo, the Nikkei fell 1.2% to 10,453, while the Hang Seng dipped 1.3% to 22,601 as investors fear events in Libya could cause contagion in other oil producing countries in the region.

In the US shares on the Dow Jones closed 107 points down at 12,105, while the S&P 500 shed 8 points to 1,307.

The FTSE has fallen below 5,900 in early trading down 0.4% or 24 points to 5,899.

Other major European indices have also opened lower, with the German Dax down 0.97% to 7,125 and the French Cac falling 0.72% to 3,985.

Royal Bank of Scotland Group is one of the biggest losers on the FTSE 100, falling 2.26% to 46.25p, after this morning announcing an annual loss of £1.13bn for 2010.

GKN, Burberry Group and ARM Holdings all opened lower.