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Europe: Shares rise after breakthrough in Merkel migration row
[LONDON] European shares gained on Tuesday after German Chancellor Angela Merkel's conservatives settled a row over migration and eased some anxieties of investors, though worries about trade wars remained.
The pan-European Stoxx 600 was up 0.8 per cent by its close, with Germany's DAX rising 0.9 per cent.
The dispute over migration had threatened to topple 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.
Equity 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.
"Stocks are higher as improved political relations in Germany and constructive trade comments from China have lifted investor sentiment," David Madden, market analyst at CMC Markets UK, said, adding that the positive mood might not last.
Miner Glencore fell more than 8 per cent after it said a subsidiary had received a US Department of Justice subpoena requesting documents and records on compliance with the Foreign Corrupt Practices Act and US money-laundering statutes.
The documents requested from subsidiary Glencore Ltd relate to the group's business in Nigeria, the Democratic Republic of Congo (DRC) and Venezuela from 2007 to present, Glencore said, adding it was reviewing the subpoena.
Another big faller was BE Semiconductor, the Dutch equipment maker, which lost nearly 9 per cent after cutting its revenue forecast.
Societe Generale rose 0.6 per cent and Commerzbank was up 0.6 per cent after the latter agreed to sell its equity markets and commodities business (EMC) to the French bank.