GLOBAL MARKETS-Stocks rebound as Fed indicates no rate hike soon

* Wall Street rebounds on Fed minutes, dollar rallies

* BoE minutes raise specter of rate hike in Britain

* Euro below $1.33 for first time in nearly a year

(Adds close of U.S. markets)

By Herbert Lash

NEW YORK, Aug 20 (Reuters) - Global equity markets rose on

Wednesday after minutes from the Federal Reserve indicated there

is no rush to bring forward plans to raise interest rates in the

future, reversing earlier declines that were driven by hints

from the Bank of England of an early rate hike.

The Fed said it has been surprised by how quickly the U.S.

labor market is healing, yet the recovery needs to be more

convincing to change its view on when to increase rates.

Stocks on Wall Street rallied after the release of the Fed

minutes, suggesting investors believe there will be no change in

monetary policy, while U.S. Treasuries prices fell.

"The Fed remains dovish. However, one eye is looking towards

improvements in labor markets. Potentially a rate increase might

come slightly sooner or the increases might come faster than

expected," said Putri Pascualy, credit strategist For Pacific

Alternative Asset Management Company, in Irving, California.

MSCI (NYSE: MSCI - news) 's all-country world equity index rose

0.05 percent.

The Dow Jones industrial average closed up 59.54

points, or 0.35 percent, to 16,979.13. The S&P 500 gained

4.91 points, or 0.25 percent, to 1,986.51, and the Nasdaq

Composite dropped 1.032 points, or 0.02 percent, to

4,526.482.

Earlier in Europe, the FTSEurofirst 300 index of

leading European shares closed down 0.07 percent at 1,346.02

points, pushed lower in part from minutes of a Bank of England

meeting where two policymakers took a hawkish stance on interest

rates.

A warning from brewer Carlsberg (Other OTC: CABGY - news) that profits

would fall this year due to deteriorating conditions in Russia

also rattled European investors.

Sterling and UK bond yields rose after the surprise tilt

toward higher British rates, while the U.S. dollar advanced to

its highest level against the euro since last September.

The Fed minutes come ahead of Fed Chair Janet Yellen's

widely anticipated address to the annual gathering of central

bankers in Jackson Hole, Wyoming, on Friday.

With U.S. and global stock indexes trading close to all-time

highs, investors await a reaffirmation of the accommodative

monetary policies that have helped spur a global rally.

"The next leg up is going to come from what we hear on

Friday from Yellen," said Phil Orlando, chief equity market

strategist at Federated Investors in New York. "The market has

been a little bit on tenterhooks."

The dollar broke through resistance at $1.3300 and last

November's high of $1.3295 per euro to trade as high as

$1.3275. It was last up 0.41 percent versus the euro at $1.3265.

It climbed to a 4-1/2-month high against the yen.

U.S. crude oil rose more than $1 a barrel ahead of the

September contract's expiry on Wednesday and as crude stocks in

the United States posted a sharp fall, while Brent bounced off a

14-month low to reach $102.

Brent crude for delivery in October settled 72 cents

higher at $102.28 a barrel. The U.S. crude contract for

September delivery rose $1.59 to settle at $96.07.

U.S. Treasuries fell, with the benchmark 10-year note

down 6/32 in price to yield 2.4281 percent.

(Reporting by Herbert Lash; Additional reporting by Jamie

McGeever in London; Editing by Dan Grebler, James Dalgleish and

Leslie Adler)