Middle East unrest still in the centre of attention; ECB ahead of a meeting (ISFM) (03-03-2011)

Stocks appeared gaining on Thursday as U.S employment figures deflected some attention from worries on how oil production will be influenced by continuing tensions in Libya while events in the Middle East and North Africa are about to remain at the forefront of investors' thoughts.

Amid crisis in Libya, Moammar Gadhafi's regime tries to claw back some ground as rebels deployed around the strategic oil installation at Brega on Thursday, a day after they foiled an attempt by Gadhafi loyalists to retake control of the port in rebel-held eastern Libya. Both Libyan leader Muammar Gaddafi and the president of the Arab League is said to have agreed to a peace plan from Venezuela's President Hugo Chavez to end the crisis in the North African country.

In Europe, the ECB is about to hold its monthly policy meeting with the main interest rate expected to stay unchanged at the record low of 1 percent. If the bank’s president Jean-Claude Trichet stays cautious over inflation, the markets will move to price in a swifter-than-anticipated interest rate increase from the ECB.

In Asia stocks appeared a little volatile with South Korea's Kospi Composite Index, rising 2.2 percent to 1,970.66 after the government said industrial output grew for the 19th straight month in January, while Japan's Nikkei 225 stock average climbed 0.9 percent to 10,586.02. Mainland Chinese shares though fell as profit taking in the afternoon offset morning gains.

Oil continues rising for another session, though a barrel of crude on the New York Mercantile Exchange traded 23 cents lower at $102 and the equivalent Brent rate in London fell 75 cents to $115.61. Many analysts expect oil prices to reach $200 a barrel with damaging consequences for the economy.

Futures had gains as Wall Street poised for a solid opening following Wednesday's modest gains while weekly jobless claims data are about to be under focus as well as the monthly non-manufacturing survey from the Institute for Supply Management.

Source: ISFM