European shares edged lower and the euro hit a fresh 22-month low against the dollar after surveys showed the region's major economies suffered a contraction in their manufacturing activities and the German business climate deteriorated.

EU leaders, advised by senior officials to prepare contingency plans in case Greece decides to quit the single currency, said late on Wednesday they were committed to Greece remaining in the euro zone but urged the country to complete the reforms demanded under its bailout programme.

Disagreements have flared over a plan for mutual euro zone bond issuance and other measures to alleviate two years of turmoil, such as giving countries like Spain an extra year to make the spending cuts demanded of them.

The U.S. Labor Dept releases first-time claims for jobless benefits for the week ended May 19. Economists in a Reuters survey forecast a total of 370,000 new filings, a repeat of last week's figures.

The Commerce Dept releases April durable goods orders, expected to show a 0.5 percent rise compared with a 4.0 percent fall in March.

Fallout from Facebook Inc's (FB.O) messy initial public offering widened on Wednesday as shareholders sued the social network and its bankers while a trading firm revealed a massive loss on the shares and threatened to seek "remedies".

Google Inc's (GOOG.O) Android mobile platform has not infringed Oracle Corp's (ORCL.O) patents, a California jury decided, putting an indefinite hold on Oracle's quest for damages in a fight between the two Silicon Valley giants over smartphone technology.

Costco Wholesale Corp (COST.O) posted a higher quarterly profit on an 8 percent increase in net sales. The warehouse club operator posted earnings of $386 million, or 88 cents a share, compared with $324 million, or 73 cents a share a year ago.

HJ Heinz, maker of everything from ketchup and steak sauce to frozen fried potatoes, posts fourth-quarter results, expected to show earnings per share of $0.79 compared to 0.71 one year earlier, according to a Reuters survey.

Tiffany also reports quarterly sales, with Wall Street looking for any pullback in spending on luxury after a bumpy quarter. 1Q EPS are forecast at $0.69 from 0.67.

Rupert Murdoch's News Corp (NWSA.O) has dropped out of the race to buy ATV television from Turkish group Calik Holding, but Time Warner Inc (TWX.N) and Dubai-based Abraaj Capital remain interested in bidding, sources close to the process told Reuters.

Europe's second-highest court on Thursday threw out MasterCard's (MA.N) challenge against a European Union ban on its cross-border credit card fees.

Goldman Sachs is due to hold its annual shareholder meeting, at which shareholders will vote on board members, pay, lobbying spending, cumulative voting and on a new lead director. Chief Executive Lloyd Blankfein may also face questions again about his tenure.

Japan's Nikkei average bounced to a modest gain on Thursday after a last-minute rally, probably triggered by a bout of short-covering in low volume by short-term investors as long-term market players stood still amid euro zone uncertainty.

U.S. stocks staged a late-day reversal on Wednesday, rallying into the close in another volatile session as a sharp rise in materials shares boosted the S&P 500 and gains in Apple (AAPL.O) helped lift the Nasdaq.

The Dow Jones industrial average .DJI dipped 6.66 points, or 0.05 percent, to 12,496.15. The S&P 500 Index .SPX edged up 2.23 points, or 0.17 percent, to 1,318.86. The Nasdaq Composite .IXIC gained 11.04 points, or 0.39 percent, to 2,850.12.

(Reporting by Francesco Canepa; Editing by Catherine Evans)

• A Permanent Economic Emergency