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European stocks slip after strong second-quarter rally

European markets started third-quarter trading on the back foot as investors feared an escalation in tensions between the US and China over Hong Kong. The continent’s composite Stoxx 600 fell 0.9 per cent as Beijing passed a law tightening its grip on the territory, a move that has been condemned by the US, Europe and Australia. The declines followed a tepid opening after mixed signals from Asia, where markets rose on Chinese data that showed a second straight month of expansion in the world’s largest manufacturing sector.
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