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European stock markets rise at open

London - Europe's main stock markets rose at the start of trading on Wednesday, with all eyes on the US economy and interest-rate outlook for the world's biggest economy.

Investors were also acting upon developments over Greece and China, analysts said.

London's benchmark FTSE 100 index gained 0.16% to 6 697.10 points compared with Tuesday's close.

Frankfurt's DAX 30 climbed 0.41% to 11 503.21 points and the CAC 40 in Paris won 0.45% to stand at 5 135.31.

Europe's main stock markets had diverged on Tuesday as investors reacted to the fallout from the plunge of banking shares on the Athens stock exchange.

European Commission head Jean-Claude Juncker believes an agreement on a third bailout for Greece in return for more tough reforms is likely this month and preferably by August 20 when Athens must make a key debt repayment.

"All the reports I am getting suggest an accord this month, preferably before the 20th," when Greece must repay some €3.4bn due to the European Central Bank, Juncker told AFP in an interview Wednesday.

Asian markets were mixed Wednesday, buoyed by a possible US interest rate hike even as China's ability to stem a recent market rout weighed on sentiment.

The dollar advanced against other major currencies after Fed Reserve Bank of Atlanta President Dennis Lockhart told The Wall Street Journal in comments published this week that he supports lifting rates in September barring an unexpected downturn in the world's top economy.

"The US dollar has continued to strengthen... following more hawkish rhetoric from a Fed official which has resulted in the market discounting a higher probability of a rate hike in September," said Lee Hardman, currency analyst at Bank of Tokyo-Mitsubishi UFJ.

Wall Street indices meanwhile finished lower Tuesday following a mixed batch of earnings reports and another big decline by technology giant Apple.

"US markets edged lower, with many on the sidelines ahead of Friday's US labour market update, and held back by uncharacteristically hawkish comments from Atlanta Fed President Lockhart who said that the Fed is 'close' and it would take a significant deterioration in US economic health for him not to support a rate rise from record lows next month," Accendo Markets said in a note to clients.

"Persistent weakness in Apple also continues to dent confidence."

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