GLOBAL MARKETS-Worlds stocks, oil down after weak data, US dollar up

* Global stocks weaker on China, Europe and US data
* Oil falls after Fed decision, China data
* Spain's borrowing costs rise
* U.S. stocks dip on Philly Fed data

NEW YORK, June 21 (Reuters) - Stock on major markets fell
and crude oil prices slumped on Thursday after data showed
Chinese, European and U.S. manufacturing activity slowing
further, just a day after the Federal Reserve extended its
monetary stimulus program due to a weakening U.S. economic
recovery.
The U.S. dollar rose against the euro and yen as the Fed's
move disappointed investors who had expected it to opt for a
more aggressive policy.
Factory activity in the U.S. mid-Atlantic region contracted
for a second month in a row in June, while the U.S. Markit
purchasing managers' index showed manufacturing grew in June at
its slowest pace in 11 months.
"As far as Philly Fed, we've seen a pretty steady diet of
lower-than-expected data points, pointing to a continued
slowdown," said Paul Nolte, managing director at Dearborn
Partners in Chicago.
The Dow Jones industrial average was down 12.00
points, or 0.09 percent, at 12,812.39. The Standard & Poor's 500
Index was down 3.99 points, or 0.29 percent, at 1,351.70.
The Nasdaq Composite Index was down 14.82 points, or
0.51 percent, at 2,915.63.
MSCI's global equity index declined 0.6
percent, with European shares was down 0.1 percent.
The Federal Reserve on Wednesday chose to extend its
bond-buying programme, dubbed "Operation Twist", rather than
implement more quantitative easing as some had hoped.
The U.S. central bank made its decision after lowering
growth and employment forecasts for the world's largest economy
in 2012 and 2013. It said it would consider more stimulus
measures if the situation worsened.
In Europe, preliminary manufacturing and service sector data
across the 17-nation euro area showed the downturn in the region
was becoming entrenched as falling new orders and rising
unemployment hit business confidence.
The survey data also showed that Germany's private sector
shrank in June for the second month running, with manufacturing
activity hitting a three-year low.
A similar survey of private sector activity in China,
compiled by HSBC, found its factory sector had shrunk for an
eighth straight month in June on weaker demand for exports.
Economic growth in the world's most populous nation is
widely expected to have slowed for a sixth straight quarter in
April through June as the country feels the impact of the euro
area debt crisis and property controls weigh on domestic demand.
In the oil market, brent crude oil futures were down
82 cents to $91.87 a barrel.
The U.S. dollar index, a measure of the greenback's
performance against a basket of currencies, rose 0.3 percent to
81.859.

Spain's financial problems were also undermining confidence
in the financial markets.
The nation's borrowing costs hit a new euro era high at a
2.2 billion euro ($2.8 billion) sale of new medium-term bonds,
when yields on the five-year debt rose to 6.07 percent, up from
4.96 percent just last month.