GLOBAL MARKETS-Stocks climb after recent pullback, dollar slips

* U.S. stocks higher in early trade, led by utilities * Dollar dips after four sessions of gains * U.S. Treasury yields pare declines after manufacturing data (Updates with U.S. market open) By Chuck Mikolajczak NEW YORK, Jan 3 (Reuters) - A gauge of global stocks pushed higher on Friday but remained on track for a weekly decline, while the dollar tired after its recent rally but found support from a stronger than expected U.S. manufacturing survey. U.S. stocks rose in early trade as the S&P 500 and Nasdaq attempted to snap a five session streak of declines, their longest since mid-April. Gains were broad, with each of the 11 major S&P sectors on the plus side, led by gains in utilities .SPLRCU . The U.S. currency rallied late last year as investors bet President-elect Donald Trump's policies would drive growth and inflation, meaning fewer further rate cuts from the Federal Reserve and higher yields on U.S. Treasuries, while European central banks are set to keep cutting rates. The Fed's December policy statement led investors to reduce expectations for the amount of cuts from the central bank in 2025. "It's a complicated picture. At first, investors were thinking back in November that (election results) is a wonderful thing because it is a clear market friendly result," said Peter Andersen, founder of Andersen Capital Management. "The main issue people will start focusing on is if his (Trump's) decisions will be inflationary and, if they are, does that signal that the Fed will do an abrupt course change and start raising rates." The Dow Jones Industrial Average .DJI rose 174.10 points, or 0.41%, to 42,565.96, the S&P 500 .SPX rose 35.43 points, or 0.60%, to 5,904.03 and the Nasdaq Composite .IXIC rose 151.10 points, or 0.78%, to 19,431.27. MSCI's gauge of stocks across the globe .MIWD00000PUS rose 3.17 points, or 0.36%, to 842.95 - on track for its biggest daily percentage gain since Dec. 24 - but still poised for its third weekly decline in the past four. In Europe, equities were lower, with the pan-European STOXX 600 .STOXX index off 0.5% but on track for a second straight weekly gain. Trading volumes were on light at the end of a holiday-shortened week. The dollar index =USD , which measures the greenback against a basket of currencies, fell 0.05% to 109.18 but pared losses after the Institute for Supply Management (ISM) said a key manufacturing index increased more than expected 49.3 last month, the highest reading since March, from 48.4 in November. The greenback was on track for its biggest weekly percentage gain since mid-November, up about 1.4%, and its fifth straight week of gains, having hit a two-year high of 109.54 in the prior session. The euro EUR= was up 0.11% at $1.0276 but set for its fifth straight weekly loss and its largest weekly percentage drop since mid-November. Against the Japanese yen JPY= , the dollar weakened 0.04% to 157.46 while the British pound GBP= strengthened 0.07% to $1.2389. The yield on benchmark U.S. 10-year notes US10YT=RR was down 0.4 basis point at 4.573%, remaining above the 4.5% mark that has proven problematic for equities, after reaching a an 8-month high of 4.641% earlier this week. U.S. crude CLc1 rose 0.83% to $73.74 a barrel and Brent LCOc1 rose 0.46% to $76.28 per barrel, buttressed by colder European and U.S. weather and additional economic stimulus announced by China. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates YTD http://tmsnrt.rs/2egbfVh ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Chuck Mikolajczak, additional reporting by Johann M Cherian and Pranav Kashyap in Bengaluru, editing by Christina Fincher) (([email protected]; @ChuckMik;))