GLOBAL MARKETS-Stocks fall as investors take profits ahead of Fed minutes

* Stocks dip worldwide as Fed rate hike talk cools mood

* Dollar ends recent slide, Fed meeting minutes due

* Oil rises after surprise EIA draw

* Emerging market stocks fall after blistering run (Updates to U.S (Other OTC: UBGXF - news) . trading, changes byline, dateline, previous LONDON)

By Dion Rabouin

NEW YORK, Aug 17 (Reuters) - Stocks around the globe turned lower on Wednesday as investors sold equities ahead of the release of minutes from the Federal Reserve's July meeting a day after two Fed officials said U.S. short-term interest rates could rise as soon as next month.

The Fed left benchmark short-term U.S. rates unchanged at its last meeting in July but said near-term risks to the economy had diminished, leaving the door open for a possible rate hike this year.

New York Fed President William Dudley and Atlanta Fed chief Dennis Lockhart both said on Tuesday that the U.S. central bank could raise rates at its September policy meeting.

Analysts said traders are positioning for the minutes, due at 2:00 p.m. (1800 GMT), for hints on when the Fed would next raise rates, but also noted Wednesday's move lower was related to technical positioning after the market's recent highs.

"It's a natural technical response to the fact that we got to the levels we got to," said Gordon Charlop, a managing director at Rosenblatt Securities in New York. "So guys are being cautious and making sure that they're paying attention to the news."

Equities prices have been on a run recently, with the Dow, Nasdaq (NasdaqGS: NDAQ - news) and S&P 500 all hitting record highs this week and the pan-European STOXX 600 index reaching a seven-week high.

On Wednesday the Dow Jones industrial average fell 45.57 points, or 0.25 percent, to 18,506.45, the S&P 500 lost 5.18 points, or 0.24 percent, to 2,172.97 and the Nasdaq Composite dropped 16.26 points, or 0.31 percent, to 5,210.86.

The STOXX 600 was 0.8 percent lower.

MSCI (NYSE: MSCI - news) 's all-world index, a gauge of global equities, fell 0.35 percent.

Emerging markets stocks saw the largest decline, falling from a one-year high touched on Tuesday. MSCI's emerging market index was last down 0.93 percent.

With (Other OTC: WWTH - news) equities on the back foot, bonds edged up, with fixed-income investors' eyes firmly on the Fed minutes after Tuesday's comments from Dudley and Lockhart. Dudley, an influential Federal Open Market Committee voter who is seen as closest on the board to Fed Chair Janet Yellen, was seen as having the most significant impact on Treasuries' moves.

"It's the aftermath of the hawkish comments from Dudley," said John Canavan, market strategist at Stone & McCarthy Research Associates in Princeton, New Jersey

Yields on the two-year note, which is sensitive to traders' views on Fed policy, were up fractionally at 0.754 percent after touching a three-week peak at 0.766 percent earlier Wednesday, according to Reuters data.

The possibility of the Fed tightening monetary policy sooner than later helped the U.S. dollar rebound against other major currencies. Traders took profits on Tuesday's gains in the euro , yen and Swiss franc, which had each touched seven-week highs. Additionally, the dollar was buoyed by expectations the Fed could strike a hawkish tone in its minutes.

The dollar index, which measures the greenback against a basket of world currencies, rose modestly from seven-week lows. It was last up 0.1 percent to 94.904.

Oil prices turned positive, with Brent crude touching its highest since July 5, after U.S. Energy Information Administration weekly figures showed a larger-than-expected draw in inventories.

Brent crude prices rose 0.95 percent to $49.75 per barrel. U.S. WTI crude prices gained 0.25 percent to $46.79, the highest since July 12.

(Reporting by Dion Rabouin; Editing by James Dalgleish)