* Shares fall worldwide on worries of stimulus cutback
* Dollar recoups losses, trades flat vs euro after U.S. data
* Oil set for biggest weekly drop since mid-April
By Herbert Lash
NEW YORK, May 24 (Reuters) - Global equity markets slipped on Friday on worries that the U.S. Federal Reserve may curtail its stimulus measures, while the dollar recovered against the euro to trade almost flat after better-than-expected U.S. durable goods data for April.
Wall Street fell and was heading toward its first weekly decline since mid-April, and stocks in Europe also declined after testimony by Fed Chairman Ben Bernanke earlier this week sparked speculation the U.S. central bank will soon trim its support for the economy.
The Fed's purchase of Treasuries and mortgage-backed securities, being conducted at a monthly pace of $85 billion, has been a boon to equities markets and other riskier assets.
"Markets are looking for a reset and a retracement lower, closer to more compelling valuations," said Peter Kenny, chief market strategist at Knight Capital in Jersey City, New Jersey.
After Bernanke's congressional testimony on Wednesday and the release of minutes from the latest Federal Open Market Committee meeting later the same day, there was a shift that "reintroduced a sense of caution that has long been absent" in markets, Kenny said.
The Fed minutes showed that some policymakers were willing to consider scaling back on bond purchases as early as the Fed's June meeting.
MSCI's all-country world equity index fell 0.31 percent, while Europe's broad FTSE Eurofirst 300 index of leading shares fell 0.3 percent to 1,226.27.
On Wall Street, the Dow Jones industrial average was down 56.75 points, or 0.37 percent, at 15,237.75. The Standard & Poor's 500 Index was down 9.52 points, or 0.58 percent, at 1,640.99. The Nasdaq Composite Index was down 18.72 points, or 0.54 percent, at 3,440.70.
The concerns about the Fed's next step helped bolster the price of gold, which was on track for its biggest weekly rise in a month.
Spot gold prices fell $3.69 an ounce, or 0.27 percent, to $1,387.00.
Orders for long-lasting U.S. manufactured goods rose more than expected in April, a hopeful sign that a sharp slowdown in factory output could soon run its course.
New orders for durable goods increased 3.3 percent last month, the U.S. Commerce Department said, and it revised prior readings for orders to show a smaller decline in March than previously estimated.
The euro was last at $1.2924, down about 0.08 percent against the dollar. Against the yen, the dollar was last 0.97 percent lower, at 101.03 yen..
Earlier, the euro had risen against the dollar after the monthly German Ifo survey showed that business morale improved more than expected in May. The data suggested that Germany, Europe's biggest economy, is picking up, making further euro zone monetary easing less likely.
Oil was poised to post its biggest weekly loss in more than a month as Brent fell below $102 per barrel, pressured by ample supply and a sluggish recovery that could dent demand for fuel.
Brent fell 52 cents to $101.92 a barrel. U.S. crude 10-year U.S. Treasury note was up 4/32 in fell 81 cents to $93.44 a barrel.
The benchmark price to yield 2.0001 percent.