* MSCI world share index down after weak China data
* S&P 500 down slightly after US services data
* European shares edge up, safe-haven bonds make ground
By Caroline Valetkevitch
NEW YORK, Jan 6 A global stock index dipped on
Monday after data showed weak service sector growth in China and
the United States, while gold edged up to its highest in nearly
U.S. Treasuries prices extended gains after the services
data, which showed a private index of U.S. service industry
activity unexpectedly fell in December.
Earlier, figures showing that China's services sector growth
slowed sharply last month added to a stack of disappointing data
from the world's second largest economy over the last week.
MSCI's world stock index, which tracks 45
countries, was down 0.2 percent, while the S&P 500 fell slightly
after the services data.
The Dow Jones industrial average rose 3.41 points or
0.02 percent, to 16,473.4, the S&P 500 lost 0.62 points
or 0.03 percent, to 1,830.75 and the Nasdaq Composite
dropped 14.676 points or 0.36 percent, to 4,117.23.
Traders are still second-guessing the Federal Reserve's take
on economic data and how it might alter the U.S. central bank's
plan to withdraw its quantitative easing stimulus, said Peter
Jankovskis, co-chief investment officer at OakBrook Investments
in Lisle, Illinois.
"On balance today's data is not going to raise concerns the
Fed may accelerate the taper," he said.
Wednesday's December Fed meeting minutes and Friday's
non-farm payrolls data could determine stocks' next move. They
should give further clues on how quickly the Fed is likely to
scale back its huge stimulus programme in the coming months.
European shares edged higher as China's data was offset by
positive euro zone data, including some showing gradual
recoveries in Italy and Spain.
FTSEurofirst 300 was up 0.1 percent.
The euro rebounded as the euro zone data suggested the
European Central Bank will not loosen its policy further any
The euro recovered from a one-month low during Asian trading
to gain 0.1 percent at $1.3604, finding support as euro
zone sentiment hit its highest in nearly three years.
In the U.S. bond market, benchmark 10-year Treasury notes
were up 8/32 in price to yield 2.965 percent, down 3
basis points from late on Friday.
There was plenty of evidence to support the caution China
data has fostered among investors.
Figures on Monday showing China's huge services sector
slowed sharply in December to its lowest point since August 2011
came hot on the heels of a similar official survey on Friday and
two other PMIs last week showing factory activity also soured.
GOLD, OIL RISE
Gold was the main beneficiary of the Asian tensions as it
continued to rebound from last year's worst run in over three
Spot gold rose to a near three-week peak of $1,245.86
an ounce in earlier trade and was last up 0.4 at $1,240.90 an
Oil bounced also after four days of falls. Brent crude oil
rose above $107 a barrel, rebounding after its biggest
weekly fall in six months on news of the restart of a key Libyan
U.S. crude gained 5 cents to $94.01 a barrel in early
trade. The contract lost $1.48 a barrel on Friday and posted its
biggest weekly drop since June 2012.