TOPWRAP 6-Euro zone sees downturn easing; US shows weakness

* U.S. jobless claims hit record, manufacturing contracts

* S&P downgrades Britain's outlook, AAA rating at risk

* Euro zone PMIs show slowing contraction

* Geithner says U.S. regulatory reforms coming soon

* Singapore's export-driven economy shrinks in Q1 (For full financial crisis coverage, click [nCRISIS])

By Caroline Valetkevitch

NEW YORK, May 21 (Reuters) - Euro zone economies showed signs on Thursday that the worst recession in six decades is easing but data from the United States on jobless claims and business conditions signaled a bumpy recovery.

In Britain, prospects were clouded by a warning over government debt and political uncertainty as Standard & Poor's lowered its outlook to "negative" and said it might cut the country's precious triple-A credit rating. [nLL627240]

U.S. Treasury Secretary Timothy Geithner said the financial system was steadying from the taxpayer-funded bailout of banks but that care must be taken to ensure normal market forces are allowed to work. [nN21365767]