Europe: Shares edge higher after breakthrough in Merkel migration row

[LONDON] European shares edged higher on Tuesday after German Chancellor Angela Merkel's conservatives settled a row over migration, a tailwind for investors wary that a US led trade war could derail global growth.

The pan-European STOXX 600 was up 0.2 per cent by 0736 GMT with Germany's DAX posting the best performance with a 0.6 per cent rise.

The dispute over immigration had threatened to topple Mrs Merkel's fragile governing coalition but in a breakthrough late on Monday evening, her rebellious interior minister dropped his threat to resign after five hours of talks.

Asian shares, which had sustained heavy falls overnight, particularly in China, recouped some of their losses before European bourses opened, helping restore sentiment. Chinese financial markets have been jittery ahead of a July 6 deadline, when the US is set to slap tariffs on US$34 billion worth of Chinese goods that Beijing has vowed to match with tariffs on US products.

Miner Glencore fell 8.5 per cent after it said a unit was subpoenaed from the United States Department Of Justice.

Societe Generale was flat and Commerzbank rose 0.4 per cent after the latter agreed to sell its equity markets and commodities business (EMC) to the French bank.

REUTERS