Europe's main stock markets fell on Thursday, the eve of US jobs data that could cement expectations of a Fed rate rise next month.

London's benchmark FTSE 100 index slid 0.47 percent to 6,720.50 points in late morning trade, with the Bank of England set to keep its main interest rate at 0.50 percent in a decision due Thursday.

Frankfurt's DAX 30 dropped 0.10 percent to 11,624.39 points and the CAC 40 in Paris shed 0.16 percent to stand at 5,188.36.

"As the camp expecting a rates rise in the coming months from both US and UK central bankers gains support, investors will be paying close attention to macroeconomic data releases," said Kash Kamal, senior analyst at Sucden Financial Research.

Europe's leading stock markets had closed higher Wednesday, while on Thursday the euro slipped to $1.0896 from $1.0904 late in New York on Wednesday.

The pound rose to $1.5626 from $1.5603 Wednesday, with investors reacting to news that British industrial production fell in June by 0.4 percent.

"June’s industrial production figures highlight that the strong pound and weak overseas demand held back the manufacturing sector’s recovery in the second quarter," said Paul Hollingsworth, UK Economist at Capital Economics research group.

Positive US data has meanwhile strengthened the case for an interest rate hike from the Federal Reserve as early as next month.

US stocks finished mostly higher Wednesday, but a disappointing earnings report from Disney weighed on the Dow Jones Industrial Average.

Traders are now focusing on Friday's official US employment figures, after payroll firm ADP estimated that the private sector in the world's biggest economy added 185,000 jobs in July, much below the analyst estimates.

The data was offset however by a separate release Wednesday from the Institute for Supply Management, which said the US service sector expanded 4.3 percent in July to a record high.

Back in Europe, Greek Prime Minister Alexis Tsipras on Wednesday said his government is nearing a deal with international creditors on a mammoth bailout, as his spokeswoman raised the prospect of early elections in the fall .

Greece's main stocks index was 3.35-percent higher at 664.77 points in trading on Thursday.

The Athens market reopened on Monday, five weeks after the government imposed capital controls to prevent a bank run and stave off financial collapse at the height of its standoff with EU-IMF creditors over a new bailout.

The ATHEX gain, if it holds, would the first since the record 16-percent plunge at the start of the volatile trading week.

Germany is meanwhile growing increasingly dubious that a deal on a third bailout for Greece can be sealed this month, the daily Bild reported Thursday citing a government source.

With just two weeks to go until an August 20 deadline, when Greece needs money from a new bailout to repay some 3.4 billion euros ($3.7 billion) due to the European Central Bank, the unnamed official told Bild: "It can't be done."