On Monday European equities briefly turned positive in morning trade as crude oil prices pared gains and automobile shares recovered after steep losses earlier in the session. Crude oil prices jumped more than $2 to a 30-month high above $106 a barrel on increasing fears that Libya was heading for a civil war, while clerics in top oil exporter Saudi Arabia backed a ban on protests. A move by rating agency Moody's to downgrade Greece's sovereign rating and assign it a negative outlook also dampened sentiment. Asian stocks dropped and US futures fluctuated.

On Tuesday European stocks rose as oil fell for the first time in three days and as investors awaited a report that may show German factory orders rebounded in January. US futures climbed, while Asian shares were little changed. Brent crude dropped briefly below $113 after Kuwait's oil minister said OPEC was in talks about a possible production hike. An official increase would signal the group's determination to keep the global recovery on track. Investors are concerned that conflict in Libya and civil unrest elsewhere in the oil-rich Middle Eastern region could escalate and hit oil supplies.

On Wednesday European stocks climbed as takeover bids boosted Iberdrola Renovables SA and Tognum AG, outweighing concern about continuing unrest in the Middle East and North Africa. Asian stocks advanced for the first day this week after oil prices retreated and Japanese machinery orders rose more than expected in January. US index futures rose.

On Thursday European stocks declined to their lowest level since January as Moody’s Investors Service cut Spain’s credit rating and export growth slowed in China, raising concern that the global economic recovery will falter. Asian stocks declined, sending the benchmark regional index to a two-week low, as violence in Libya tempered optimism in a global economic recovery and Japan’s economy shrank more than estimated. US stock-index futures slid.

On Friday European stocks dropped for a third day, erasing this year’s advance, as insurers tumbled after the biggest Japan earthquake in at least a century triggered a 10 meter tsunami. US index futures and Asian shares retreated.