6:30AM Upbeat earnings outlooks help Europe to a strong start.
European markets were higher on Wednesday morning. The U.K. FTSE 100 index gained 0.5% at 5,970, the German DAX Xetra 30 index rose 0.7% at 5,634 and the French CAC-40 index climbed 0.8% at 4,988. British Cadbury Schweppes climbed 3% stating that first-half net profit advanced to 819 million pounds from 237 million pounds on 22.5% revenue growth and in France, Danone gained 2.5% reporting that its first-half profit rose stronger than forecast and it upped its revenue growth view.

In the banking sector, French bank BNP Paribas advanced 2.4% reporting that its second-quarter net profit gained 30.6% Swiss Credit Suisse Group shed 3.5% as it disappointed the market, despite the unexpectedly strong growth after second-quarter profits came only in line with market expectations.

Oil prices rose Wednesday as traders nervously observed a tropical storm in the Caribbean and the fighting in the Middle East, fearing supply threats. Light sweet crude for September delivery added 38 cents to $75.29 a barrel. September Brent gained 43 cents to $76.32 a barrel at London''s ICE Futures exchange.

Gold hit a high of $649.75 an ounce as firm oil prices and a volatile US dollar sparked off speculative buying. The euro was slightly lower against the U.S. dollar Wednesday as markets awaited signals from the European Central Bank on its future interest rate course. The euro bought $1.2813 in early European trading, just below the $1.2817 it bought in New York late Tuesday. The British pound slid to $1.8752 from $1.8758. The dollar was barely lower against the Japanese currency, falling to 114.47 yen from 114.52 yen.