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LONDON, July 3 (Reuters) - 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 U.S. led trade war could derail global growth.
The pan-European STOXX 600 was up 0.2 percent by 0736 GMT with Germany's DAX posting the best performance with a 0.6 percent rise.
The dispute over immigration 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.
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 U.S. is set to slap tariffs on $34 billion worth of Chinese goods that Beijing has vowed to match with tariffs on U.S. products.
Miner Glencore fell 8.5 percent after it said a unit was subpoenaed from the United States Department Of Justice.
Societe Generale was flat and Commerzbank rose 0.4 percent after the latter agreed to sell its equity markets and commodities business (EMC) to the French bank. (Reporting by Julien Ponthus Editing by Raissa Kasolowsky)