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European shares drop on growth fears, London slides on fresh Brexit drama

Published 02/10/2019, 08:23
Updated 02/10/2019, 08:30
European shares drop on growth fears, London slides on fresh Brexit drama

(For a live blog on European stocks, type LIVE/ in an Eikon

news window)

Oct 2 (Reuters) - European shares opened lower on Wednesday,

with London stocks lagging the most on fresh Brexit drama, while

global growth fears intensified after several dismal factory

reports were released across the bloc and the United States.

The FTSE 100 index .FTSE slipped 0.5%, the largest drop

across European regions and ahead of UK Prime Minister Boris

Johnson's talks with Brussels as he prepares to unveil his final

Brexit offer later in the day.

Investors were still reeling from the shock of dismal U.S.

and euro zone factory data on Tuesday, which saw the

pan-European STOXX 600 index .STOXX and the euro zone index

.STOXXE log their biggest one-day drop in two months.

Adding to investor anxieties, European companies looked set

for their worst quarterly earnings in three years as revenue

drops for the first time since early 2018, according to the

latest Refinitiv data. The STOXX 600 index .STOXX fell 0.3% by 0709 GMT, with the

food & beverage index .SX3P clinging to gains as shares in

French spirits maker Pernod Ricard PERP.PA rose 2.1% after

Jefferies upgraded the stock to "buy".

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