European shares hit one-month low

European shares hit a one monthlow on Wednesday, with London stocks lagging the most on fresh worries over Brexit, while global growth fears intensified after several dismal factory reports were released across the bloc and the United States.

The FTSE 100 index slipped 1.2%, 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 also still reeling from the shock of dismal U.S. and euro zone factory data on Tuesday, which saw the pan-European STOXX 600 index and the euro zone index . log their biggest one-day drop in two months.

A drawn out U.S.-China trade war, along with slowing economic growth and Britain’s dramatic exit from the European Union, have rattled European equity markets this year. The STOXX 600 gained around 2% in the third-quarter compared with 12% in the first three months of the year. However, more heartache may be around the corner as European companies could be 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.

Data on Tuesday from Europe’s powerhouse - Germany - showed manufacturing recession deepening in the bloc’s biggest economy. Frankfurt shares fell 0.9% to their lowest level since early September, extending a drop from Tuesday. Euro zone bond yields inched up on Wednesday, in a sign that investors were bracing for further deterioration in economic growth. All eyes are now on the release of service sector data from the euro zone on Thursday.

The STOXX 600 index dropped 0.9%, with the commodity-linked basic resources sector . falling the most, tracking a drop in metal prices.

In a bright spot, the travel & leisure sector gained 0.4% and was the sole gainer among the major European sub-sectors as gambling stocks outperformed.