European Stocks Edge Up On U.S. Earnings, Debt Vote

European Stocks Edge Up On U.S. Earnings, Debt Vote

European stocks kicked off Wednesday's session in green after a slew of solid earnings reports boosted global economic optimism alongside rising hopes that U.S. debt limit could be passed later in the day. European corporate earnings season for the fourth quarter has started today.

Traders wait for U.S House of Representatives` vote for a three-month extension on the country`s debt-ceiling, where Republican-led House will vote today to pass a legislation suspending the government's $16.4 trillion debt limit until May.

The U.S. borrowing authority would be automatically increased to accommodate the amount the Treasury borrows during those three months. Lawmakers have until March 1 before automatic spending reductions will start and until the end of that month to pass a bill to fund the government.

U.S. Corporate earnings continued to remain in focus after technology heavyweights Google and IBM reported improved fourth-quarter results.

Google shares jumped in after-hours trade after the search engine giant reported a better-than-expected increase in fourth-quarter profit, benefiting from strong advertising revenues and lower income tax.

Technology services company IBM beat estimates in fourth-quarter profit, as improved gross margin helped offset a slight decline in revenue.

Another tech major, Apple is set to release its earnings report later in the day.