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Morning Reading: Euro Hope and Housing Data

What to watch, courtesy of Yahoo! Finance's Elizabeth Trotta:

World stocks and U.S. futures are rallying this morning and commodities are rebounding sharply from a recent sell-off on hopes for a European debt solution.

German Chancellor Angela Merkel said at an industry conference that Germany would do whatever it could to support Greece winning back confidence.  Although Merkel still rejected the idea of Eurobonds and said Germany is "not available" for further stimulus programs.

Economic data will be on the light side, with the Case-Shiller home price index at 9 a.m. ET, and a reading on consumer confidence later in the morning.

The housing agency's inspector general said in a report Tuesday the FHFA did not properly check the settlement deals between Fannie and Freddie and lenders who sold them substandard mortgages.

Economic Data:

9 a.m. Case-Shiller 20 city home price index (prior -4.52%, expected -4.5%)

10 a.m Consumer Confidence (prior 44.5, expected 46.6)

Early Headlines:

Euro zone struggles to stem crisis; Obama urges action

European debt resolution hopes buoy stocks

Merkel: will help Greece restore confidence

Report: Poor review of BofA mortgage settlements

Oil rises above $82 on Europe debt progress hop

Confidence to improve only slightly in Sept.

Lenovo, Compal enter joint venture

Minimum wage jobs leave millions in poverty

S&P sees liquidity strain for China developers