What characteristics should you start with in morrowind

It depends on what you wish to be. For a Warrior, Strength and Endurance are important, for a Mage Intelligence and Willpower are helpful, while for a Thief Agility and Speed are the most useful.

I usually start off as a warrior with these skills:
Major: Long blade, heavy armor, medium armor, speechcraft, security
Minor:Short blade, block, armorer,sneak,mercantile
Main characteristics:Speed, Strength

I choose this because you are beast with weapons, can unlock doors you need to, and can taunt people into attacking you so you dont get in trouble for it. Also because I have figured out that Warriors tend to have it the easiest at the games beginning, so I start off as one nd later, when i have good money, I simply train all the other skills I want to I can be a mixture of all of them.