* FTSEurofirst tracks Asian stocks lower
* Brent crude just short of $100/bbl
* Euro, Bunds steady
* Egypt protests continue, more than 100 dead
By Simon Jessop
LONDON, Jan 31 (Reuters) - Global shares continued to slide
on Monday, while Europe's benchmark Brent crude was just short
of $100 a barrel on fears political unrest in Egypt could spread
among regional oil-producing nations.
Protests to end the 30-year rule of President Hosni Mubarak
continued over the weekend, heightening risk aversion for
European investors already concerned by the effect their own
region's sovereign debt crisis and inflation could have on
growth.
"Whilst Egypt's importance to the global economy is limited,
its importance to the transportation of oil is huge," said
Jonathan Sudaria, night dealer at London Capital Group.
"Traders are concerned that with already rising inflation
and falling real incomes for consumers, a further rise in energy
prices could really dampen any consumer confidence and prospects
for growth."
Benchmark Brent crude <LCOc1> had come off slightly to trade
down 0.4 percent at $98.93 a barrel by 0900 GMT, after hitting a
28-month high on Friday.
"The Egyptian situation looks to be the primary factor,"
said David Land, chief market analyst at CMC Markets. The market
is reacting to "what this could mean in terms of stability for
such a vital region for energy production", he added.
The protests in Egypt follow the collapse of the Tunisian
government two weeks ago, and there are fears of similar unrest
in other autocratic states including oil-rich Gulf nations.
Protest-contagion fears and risk aversion pushed European
shares lower again at the open, with the FTSEurofirst 300
<> down 1 percent at 0900 GMT after falling 1 percent on
Friday.
Elsewhere, the MSCI world equity index <.MIWD00000PUS> and
Thomson Reuters global stock index <.TRXFLDGLPU> were also both
down around 0.5 percent, while emerging stocks <MSCIEF> were
down 1 percent.
Overnight in Asia, the Nikkei share average <> had
ended down 1.2 percent while the MSCI Asia Pacific ex-Japan
stock index fell 1.1 percent.
Among commodities, spot gold <XAU=> steadied after hitting
an Egypt-fuelled eight-week high on Friday, while copper <MCu3>
rose 1.1 percent and other base metals also gained on
short-covering ahead of a week-long Chinese holiday.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Investors hedge risk on Egypt fallout fears []
World markets slump on Egypt turmoil, oil jumps []
Egypt unrest hits equities with Middle East ties []
TAKE-A-LOOK-Egypt's unprecedented protests []
Reuters Insider link: Volatility Soars on Egypt
http://link.reuters.com/kyd77r
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EURO, BUNDS STEADY
Weakness in equities helped Bund futures <FGBLc1> edge
higher in early trade, with the prospect of further turmoil in
the Middle East underpinning sentiment.
The Bund future <FGBLc1> was up 0.1 percent to 123.87 by
0849 GMT compared with 123.73 at Friday's settlement close.
Cash 10-year Bund yields <DE10YT=TWEB> and the two-year
Schatz yield <DE2YT=TWEB> were both flat.
Moody's on Monday downgraded Egypt to Ba2 with a negative
outlook on the back of the protests, citing a "far more
uncertain outlook".
In currency markets, the euro <EUR=> was up 0.1 percent
against the dollar by 0853 GMT, steadying after a Friday selloff
on the back of the Egypt protests.
The dollar was flat against a basket of major currencies
<.DXY>.
(Additional reporting by Joanne Frearson and Alejandro
Barbajosa; editing by Stephen Nisbet)
