Stocks dip after hitting fresh peaks Thursday 14.50 GMT. US stocks began 2014 on a softer note following their recent succession of record highs, while their European counterparts remained under pressure after touching a five-and-a-half year peak. Soon after the start of trade on Wall Street, the S&P 500 was down 0.6 per cent from Tuesday's record closing high as bulls paused for breath following the best year for the index since 1997. Across the Atlantic, the FTSE Eurofirst 300 was down 0.5 per cent and the Xetra Dax index was 1 per cent lower after earlier hitting a record peak. European indices tracked lower in mid-morning trade, despite some encouraging purchasing manager data from Germany, whose manufacturing index hit a 30-month high, and Italy, whose PMI hit a 32-month high. But news of Fiat's Chrysler deal lifted shares in the Italian carmaker by nearly 15 per cent and helped Milan's FTSE MIB index buck the weak trend in Europe by rising 0.2 per cent. In London, the FTSE 100 slipped 0.3 per cent after manufacturing activity, although still robust, slowed slightly in December from November's 33-month high. Asian stocks were flat to lower after some tepid manufacturing data from China, currency concerns in South Korea and political protests in Thailand. Hong Kong's Hang Seng index inched up 0.1 per cent, but on the mainland the Shanghai Composite fell 0.3 per cent after purchasing manager surveys of the manufacturing sector failed to ignite fresh enthusiasm. In South Korea, a seven-month high in HSBC's Korean manufacturing PMI did little to help the local market, and the Kospi Composite dropped 2.3 per cent after the won moved to its strongest level in five years on the first day of 2014 trading. The Korean won has strengthened 22 per cent against the yen in the past year as Japan undertakes vast monetary stimulus, and fears of uncompetitive exports have hit equity trading. Meanwhile, Thailand's main equity index fell 5.2 per cent as the country's political crisis deepened after protesters took to the streets over the new year, putting the forthcoming elections in doubt. Protesters on Wednesday blocked the registration of candidates for 28 constituencies, Thailand's election commission said. The baht was among the worst performers on currency markets as fears the protests would hit capital inflows prompted investors to dump Thai assets. The currency fell 0.9 per cent to Bt32.96 against the dollar, hitting its lowest level since March 2010 after a record 11-day losing streak. Elsewhere, most leading currencies were lower against the dollar. The euro slipped 0.8 per cent to $1.3648, while the pound fell 0.7 per cent to $1.6444, but the US currency slipped rose 0.3 per cent against the yen to Y104.91. Commodity markets were more upbeat as precious metals embarked on a new year rally after a dismal 2013. Gold was hovering around a two-week high as it climbed $20, or 1.7 per cent, to $1,225 an ounce. Silver, meanwhile, jumped 3.8 per cent to $20.07 an ounce. Oil prices fell, however, with Brent crude down $1.17 to $109.50 a barrel. Government bond markets continued to wilt, pushing yields higher. In the UK, the 10-year Gilt yield hit a fresh 29-month high of 3.09 per cent, before easing back to stand 1 basis point higher at 3.05 per cent. Germany's 10-year Bund rose 1bp to 1.95 per cent. The US 10-year Treasury yield was flat at 3 per cent. Tokyo markets were closed for a holiday. Additional reporting by Patrick McGee in Hong Kong