GLOBAL MARKETS-US stocks cut losses, dollar falls on Fed minutes

* Wall Street pares losses, European shares end lower
* Dollar weakens broadly after minutes suggest Fed ready to
ease soon
* Eurogroup chief keeps Greek extension hopes alive
* Weak Japanese data adds to worries about global growth

By Wanfeng Zhou
NEW YORK, Aug 22 (Reuters) - U.S. stocks trimmed most
losses, Treasury yields fell and the dollar tumbled broadly
after minutes from the Federal Reserve's last meeting suggested
the U.S. central bank was ready to ease monetary policy soon.
Shares had traded lower earlier in the session after weak
Japanese data revived worries about world economic growth and on
uncertainty surrounding Greece, whose leaders meet with European
officials this week aimed at securing more time push through
reforms.
The Federal Reserve is likely to deliver another round of
monetary stimulus "fairly soon" unless the economy improves
considerably, minutes from the central bank's August meeting
said.
"This is quite a surprise, this announcement, and you are
seeing the market react a bit favorably towards it," said Tim
Ghriskey, chief investment officer of Solaris Group in Bedford
Hills, New York.
Even though the meeting was held before a recent improvement
in the economic data, Quincy Krosby, market strategist at
Prudential Financial in Newark, New Jersey, said moves in stocks
and the dollar suggest "the market is questioning if the
improvement we're seeing is 'substantial' enough for Chairman
(Ben) Bernanke.
"I think he wants the (recently improving) economic data to
translate into private sector job creation," Krosby said. "Over
all in general you can see the dollar weakened, telling you the
initial reaction from the markets is that it is sooner rather
than later that the Fed will come in."
On Wall Street, the Dow Jones industrial average was
down 26.76 points, or 0.20 percent, at 13,176.82. The Standard &
Poor's 500 Index was up 1.07 points, or 0.08 percent, at
1,414.24. The Nasdaq Composite Index was up 8.26 points,
or 0.27 percent, at 3,075.52.
The MSCI global share index fell 0.2 percent
to 325.81, having hit its highest level since early May on
Tuesday.
European shares fell from a recent 13-month high, with the
FTSEurofirst 300 index of European shares ending 1.2
percent lower.
Earlier, Japan said exports slumped the most in six months
in July as shipments to Europe and China tumbled, adding to
concerns over global demand.
U.S. Treasuries rallied after the Fed minutes. Benchmark
10-year notes were trading 24/32 higher in price to
yield 1.7174 percent.
The dollar fell 1.1 percent to 78.44 yen, while the
euro climbed 0.4 percent to $1.2522 after hitting a seven-week
high of $1.2538.
Greek Prime Minister Antonis Samaras conferred with
Eurogroup chief Jean-Claude Juncker on Wednesday and asked that
Greece be given more time to accomplish austerity goals. Juncker
appeared to keep the door open to an extension, saying a
decision to grant more time would depend on a review by the
European Union and International Monetary Fund of Greece's
progress.
Samaras will also meet with German Chancellor Angela Merkel
and French President Francois Hollande later this week.
But Merkel said there will be no decisions at Friday's
meeting with Greece.
Oil prices rose, bolstered by Fed easing hopes, a sharp drop
in oil inventories and tropical weather threats. Brent crude
advanced 36 cents to $115.00. U.S. crude rose 42
cents to end at $97.26 per barrel.