World stocks slip, euro rebounds

(Reuters) - World stocks slipped on Tuesday, despite emerging market gains, while the euro recovered on expectations of higher interest rates.

Portugal's debt remained under pressure, with yields on its 10-year bonds near record levels above 8 percent, complicating the country's attempts to avoid a European Union bailout.

World stocks as measured by MSCI were essentially flat to slightly lower, but the emerging market component gained more than a quarter of a percent.

Price drops on Monday enticed bargain-minded investors ahead of the end of the first quarter on Thursday.

"Some investors concluded now it's an opportunity to pick up some shares," said Shane Oliver, head of investment strategy at AMP Capital Investors in Sydney. "The broad trend is up and dips are being bought."

Europe was lower, however, with the FTSEurofirst 300 down 0.4 percent. Volume has begun to fall on European bourses in line with 2011 lows on Wall Street.

Some of this may reflect continuing uncertainty about how the Japan disaster, turmoil in the Arab world and global monetary policy will play out. But it could equally be a case of locking in Q1 profits.

Overall, investors are interpreting what they have seen in recent weeks as reasonably positive," said Keith Bowman, equity analyst at Hargreaves Lansdown. Investors have generally focused on the improving world economy, but the crises and worries about inflation may be taking some toll.

Oil slips more as Libyan rebels advance

LONDON, (Reuters) - Brent crude eased on Tuesday, falling for a third day running, as Libyan rebels advanced against government forces.

Brent crude futures for May delivery LCOc1 fell 54 cents to $114.26 a barrel by 0916 GMT. U.S. May crude futures CLc1 fell for a fourth day, down 61 cents to $103.37. "There's talk in the market about oil supply from Libya being restored quicker than anticipated," said Ben Westmore, a commodities analyst at National Australia Bank. The rebels have regained control of key oil ports but expectations of a quicker return to normal for crude exports were muted. Traders expect the loss of Libya's nearly two percent share of world crude output to last for months.