European stocks struggling to recover post-Brexit losses are facing a double whammy. The Stoxx Europe 600 Index’s 200-day moving average and the level at which equities closed on June 23, the day of the Brexit vote, have converged. That means a technical barrier around 346 index points has further strengthened, making it more challenging for the region’s stocks to follow global peers in erasing the losses since Britons voted to leave the European Union.

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