Europe: Weak data, Brexit woes knock stocks off 1-month high

Mr Johnson lost his working majority in parliament when one of his Conservative lawmakers defected to the pro-European Union Liberal Democrats.

"If we see continued period of sterling strength, I would expect domestically focused mid-cap FTSE 250 names to outperform. People are currently are quite underweight on the UK names than the more globally exposed large-cap names.

The rising worries encouraged investors to shift away from risky equities to safe-haven assets such as government bonds, resulting in yields on German and Italian 10-year bonds hitting a record low.

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