* China manufacturing index dips, missing forecasts
* Dollar jumps against currency basket after strong data
* Gold up, 10-yr Treasury yield dips just shy of 3 pct
By Rodrigo Campos
NEW YORK, Jan 2 World share markets kicked off
2014 with a whimper on Thursday, weighed down by disappointing
Chinese manufacturing data, with oil prices also lower as Libya
prepares to reopen a major oilfield.
After their best run in 15 years, U.S. markets fell in early
trading, with major indexes posting their largest daily drops in
The U.S. dollar, however, was having its biggest daily rally
in five months against a basket of major currencies as jobs,
housing and manufacturing data gave support to the Federal
Reserve's decision to start slowing its stimulus program this
Global manufacturing ended 2013 on a strong note as major
exporters like Japan, Germany and Italy posted their fastest
growth in years, although China's performance remained modest,
Manufacturing data from China overnight and on Wednesday
"There was a sequential decline in the (Chinese) PMI number,
so that knocked down indexes a bit. It's definitely taking a bit
of a breather in looking for the new catalyst, looking for the
next investment theme to unfold and develop," said Anastasia
Amoroso, global market strategist with J.P. Morgan Funds, in New
"It's a slow start to the new year but it's also important
to look past one day of data points and what we think is going
to be a continuation of a cyclical expansion in the United
States and elsewhere."
The Dow Jones industrial average fell 87.23 points,
or 0.53 percent, at 16,489.43. The Standard & Poor's 500 Index
was down 11.12 points, or 0.60 percent, at 1,837.24. The
Nasdaq Composite Index was down 28.04 points, or 0.67
percent, at 4,148.56.
The pan-European FTSEurofirst 300 was down 0.8
percent after starting the day at a 5 1/2- year high. MSCI's
45-country share index was also down 0.8
Crude prices fell after Libya prepared to restart a major
oilfield and on slowing economic expansion in China, the world's
No. 2 oil consumer.
Brent was last down 2 percent at $108.59 a barrel
and U.S. crude was last at $96.36 per barrel, also down 2
Spot gold climbed 1.9 percent to $1,223 an ounce
. The move recouped some of the losses that made last year
gold's worst in three decades.
Three-month LME copper rose to its highest in seven
The euro, the strongest-performing major currency in 2013
but historically a weaker performer at the start of a calendar
year, dropped to a two-week low of $1.3634 and last traded 0.8
percent lower at $1.3648.
The U.S. dollar hit a high of 105.44 yen, its strongest
level versus the Japanese currency since October 2008, before
erasing gains to trade down 0.2 percent at 105 yen.
Japanese financial markets are closed on Thursday and Friday
for the New Year's break.
Against a basket of currencies the greenback rose 0.7
"Today is the first day where fundamentals work out again
... That's why there is pressure on euro/dollar," said Ulrich
Leuchtmann, the head of currency research at Commerzbank in
Yields on U.S. 10-year paper dipped below 3
percent after hitting a high of 3.04 percent.