GLOBAL MARKETS-S&P recovers from losses, dollar falls after Fed

* Wall Street pares losses, European shares end lower
* Dollar weakens 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 recovered from
losses to finish flat on Wednesday, Treasur y yields fell a nd the
dollar tumbled broadly after Fe deral Reserve mi nutes suggested
the c en tral bank m ight ease monetary policy further soon.
The S&P 500 index fell early in the session on weak Japanese
exports data and uncertainty surrounding Greece, whose leaders
meet with European officials this week aimed at securing more
time to push through reforms.
The Fed minutes from August said the U.S. central bank is
likely to deliver another round of monetary stimulus "fairly
soon" unless the economy improves considerably.
"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.
The Dow Jones industrial average ended down 30.82
points, or 0.23 percent, at 13,172.76. The S&P 500 Index
finished up 0.32 point, or 0.02 percent, at 1,413.49. The Nasdaq
Composite Index closed up 6.41 points, or 0.21 percent,
at 3,073.67.
The MSCI global share index fell 0.3 percent
to 325.65, o ff a session trough of 324.03. T he index hit its
highest level since early May on Tuesday.
The Fed meeting took place before several recent encouraging
U.S. economic reports. The movements by stocks and the dollar
suggest "the market is questioning if the improvement we're
seeing is 'substantial' enough for Chairman (Ben) Bernanke,"
Quincy Krosby, market strategist at Prudential Financial in
Newark, New Jersey, said.
"I think he wants the (recently improving) economic data to
translate into private sector job creation," Krosby said.
"Overall, 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."
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 , driving
yields to their lowest levels in over a week. U.S. benchmark
10-year Treasury note yields fell 3 basis points to
1.71 percent, the lowest level since Aug. 14.
Chances the Fed will launch a third round of money printing
h ave r isen slightly over the past month to 60 percent, according
to a recent Reuters poll that also showed economists lowering
economic growth expectations for this year and next.
.
Investors will now be closely scouring Fed Chairman Ben
Bernanke's speech at the central bank's annual conference in
Jackson Hole, Wyoming, at the end of this month for signs of
whether the bank will act in September.

WEAKER DOLLAR
The dollar fell 0.9 percent to 78.53 yen, while the
euro climbed 0.4 percent to $1.2516 after hitting a seven-week
high of $1.2538 on Reuters data.
The dollar index, which tracks the greenback versus a
basket of currencies, slipped 0.4 percent.
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
ad vanced 27 c ents to se ttle at $1 14. 91. U .S. crude
rose 42 cents to end at $97.26 per barrel.
Platinum rose to a 3-1/2 month high after signs of
spreading unrest in top producer South Africa ignited concern
among investors over supply. Spot gold surged above
$1,650 an ounce for the first time since early May.