*Nikkei drops 7 pct, Wall Street down for second day. NEW YORK, May 23- Stock markets worldwide fell sharply on Thursday as surprisingly weak data from China and Europe raised worries about slow growth a day after U.S. Federal Reserve chief Ben Bernanke broached the possibility of reducing stimulus that has buoyed investor confidence.
LONDON, May 23- Gold rose on Thursday as the dollar remained under pressure after falling U.S. weekly jobless claims and as a senior Federal Reserve official said the central bank is in no hurry to start winding down its economic stimulus.
LONDON, May 23- Federal Reserve policymaker James Bullard said on Thursday that the bank should wind back its support slowly when it starts the process.
LONDON, May 23- A top U.S. central bank official sought to reassure financial markets that the Federal Reserve was not in a hurry to start winding down its economic stimulus as investors worried about comments by its chairman Ben Bernanke.
*Praet says ECB could expand its instruments. PARIS/ WASHINGTON, May 23- The European Central Bank is looking into expanding its range of policy tools, while the U.S. central bank is mulling scaling back its support measures, highlighting the contrasting fortunes between the world's two biggest economic blocs.
*China manufacturing data shows contraction. NEW YORK, May 23- U.S. stock index futures fell on Thursday, putting the S&P 500 on track for its first daily back-to-back declines in a month, amid investor concerns the U.S. Federal Reserve may begin to taper its stimulus measures and over weak data in China.
*China manufacturing data shows contraction. NEW YORK, May 23- U.S. stock index futures fell on Thursday, putting the S&P 500 on track for its first daily back-to-back declines in a month, amid investor concerns the U.S. Federal Reserve may begin to taper its stimulus measures and over weak data in China.
LONDON, May 23- Federal Reserve policymaker James Bullard said on Thursday that while the U.S. economy was improving, he would like to be sure inflation was heading back towards target before the bank started winding down its support programme.
LONDON, May 23- Chinese factory activity shrank in May for the first time in seven months, overshadowing signs that the euro zone's downturn tempered slightly in May, business surveys showed on Thursday. Federal Reserve Chairman Ben Bernanke, who hinted on Wednesday the Fed could soon pare back its bond-buying with new money if the economy maintains momentum.
LONDON, May 23- The Federal Reserve should stick with its asset-buying programme and adjust the pace depending on how economic data comes in, a top policymaker at the U.S. central bank said on Thursday.
*China data heaps pressure on indexes at 5- yr highs. *Halfords wilts in wake of dividend cut. Federal Reserve could soon taper its stimulus programme and compounded by weak economic data from China.
*Copper falls as much as 3 pct, oil down for third day. SINGAPORE, May 23- Copper fell 3 percent and oil dropped for a third day on Thursday after a factory survey suggested China's economic recovery has stalled and Federal Reserve Chairman Ben Bernanke hinted at possible cutbacks in the U.S. stimulus plan.