BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - U.K. stocks fell on Wednesday and the pound hit a two-month high against the euro as a crushing defeat to Prime Minister Theresa May's EU withdrawal agreement raised hopes that politicians can avoid a no-deal Brexit.
The PM faces a vote of no confidence today, which, if successful, could topple the government and spark a general election.
On surviving the vote of no confidence, she has until January 21 to put forward her Plan B.
On the data front, Britain's annual inflation dropped 2.1 percent in December, the least in almost two years, from 2.3 percent in November, official data showed.
The benchmark FTSE 100 was down 40 points or 0.59 percent at 6,854 in opening deals after rising 0.6 percent on Tuesday.
Pearson shares plunged over 6 percent. The publishing and education company said it would deliver FY adjusted operating profit in line with guidance.
Consumer goods giant Reckitt Benckiser fell 2.4 percent. Chief Executive Officer Rakesh Kapoor has indicated his intention to retire by the end of 2019 after more than 8 years as CEO and 32 years at the company.
Bovis Homes soared 4.8 percent. The housebuilder said it expects to deliver a significant step-up in operating margin for 2018, with profits for the year expected to be slightly ahead of market consensus.
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