European shares edged up on Wednesday, with the previous session's steep sell-off to one-month lows tempting in fresh investors with bets that Greece will muddle through its debt woes and global growth will hold up relatively well.

We are seeing this as a natural consolidation and a small profit taking ... We think there is so much at stake, so eventually the (Greek) deal will go through, but we expect volatility for the next couple of days, Peter Garnry, equity strategist at Saxo Bank, said.

Fundamentally we still think that equities are one of the cheaper asset classes, compared to bonds, and we still think the economy will continue to expands in the U.S. (Reporting By Toni Vorobyova)