European shares slid on Thursday, giving up some of the stellar gains after top central banks pumped dollar liquidity into the banking system to avert a global financial crisis. London's FTSE 100 index of top companies dipped 0.29 percent to 5,489.34 points, while in Paris the CAC-40 dropped 0.78 percent to 3,129.95, points and in Frankfurt the DAX 30 fell 0.87 percent to 6,035.88 points. Milan slid 0.16 percent and Madrid gave up 0.34 percent. The European single currency meanwhile firmed to $1.3464, compared with $1.3438 late in New York on Wednesday. The dollar rose to 77.70 yen from 77.58 yen on Wednesday. US stocks also slipped after stunning four-plus percent jumps on Wednesday, with the Dow Jones Industrial Average down 0.34 percent to 12,004.89 points approaching midday. The broader S&P 500 lost 0.24 percent to 1,244.00 points, while the tech-heavy Nasdaq Composite eased by 0.04 percent to 2,619.39 points. Global markets and the euro had rocketed on Wednesday after six major central banks, led by the US Federal Reserve, pumped liquidity into the financial system to prevent a global breakdown driven by the eurozone debt crisis. In a surprise move, the central banks of the United States, the eurozone, Britain, Japan, Canada and Switzerland said they would cut the cost of providing dollars to banks. "The action by the central bank is a direct counter-attack to the tensions in the interbank market which have continued to worsen as a consequence of the eurozone crisis and stresses in the banking sector," said Rabobank analyst Jane Foley. The arrangement allows the central banks to lend dollars to commercial banks that might be finding it hard to borrow directly from other banks. They said they would reduce the interest rate on this operation by half a percentage point from December 5 until February 1, 2013. However Bank of England Governor Mervyn King said that the coordinated central bank action was only "temporary relief" to the eurozone's "underlying solvency problems" which he said have to be tackled directly by the governments. The European Central Bank will not act as lender of last resort for struggling eurozone countries, its chief Mario Draghi insisted on Thursday, but left the door open to other measures if governments agree on budgetary consolidation. Asian markets jumped on Thursday after the move to boost liquidity for the gummed-up financial system, despite official data showing that Chinese manufacturing activity shrank in November for the first time since February 2009. Hong Kong rallied 5.63 percent, Shanghai won 2.29 percent and Tokyo jumped 1.93 percent higher. Seoul added 3.72 percent and Sydney increased by 2.64 percent. "Strong trading in Asia on Thursday extended gains made around the world on Wednesday after many global central banks made pledges to improve liquidity," said Owen Ireland, broker at Valbury Capital. "Not only has this lifted spirits worldwide, the move confirms that policy makers are willing to do what is necessary to encourage stability in the markets. However, other analysts argued that the move would not solve the root cause of liquidity problems. Eyes will now be on a European summit next week, where pressure will be on leaders to come up with a plan to tackle the region's two-year-old sovereign debt crisis. "This move is obviously aimed at alleviating the dollar funding strains that the European Banking system is currently experiencing," said equities analyst Juliet Tennent at Goodbody Stockbrokers in Dublin. "While this may provide short term relief to the European banking system, particularly with year end looming, it does not address the fundamental issues that the euro-area is facing. "We will have to wait for the outcome of the summit of EU leaders on the 9 December to see what further action is to be taken in that regard." US investors were also sceptical after Wednesday's heady rally. "Wall Street is keeping one cautious eye across the pond, where conflicting news from all corners has traders a bit on edge," said Karee Venema of Schaeffer's Investment Research. US data was also contradictory. New claims for US unemployment insurance rose slightly for the second straight week, hitting 402,000 in the week ending November 26. Most analysts expected claims to fall last week amid an easing trend in the weekly data. But offsetting that negative news was a better-than-expected read on the US manufacturing sector for November. The ISM manufacturing index hit 52.7 percent, up a solid 1.9 percentage points from October.