UPDATE 1-European shares hit one month-low as growth worries intensify

Shreyashi Sanyal and Sruthi Shankar

(For a live blog on European stocks, type LIVE/ in an Eikon news window)

* FTSE 100 leads declines across major regions

* Travel & leisure only index in the black

* Europe Q3 earnings outlook worsens (Adds comments, updates market action)

Oct 2 (Reuters) - European shares hit a one month-low 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.

But 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.

"It's going to be a tough season and the most important thing will be how the companies view going into Q4 and the early outlook for 2020, which is shaping up to be a tough year for markets and corporates," said Neil Campling, analyst at Mirabaud Securities.

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.

Finnish engineering firm Metso fell 5%, the most on the STOXX 600 after J.P.Morgan and Credit Suisse downgraded the company's stock.

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.

Flutter Entertainment, formerly known as Paddy Power Betfair, jumped 15% after the company agreed to merge in an all-share deal with Stars Group Inc (TSG), owner of Poker Stars. (Reporting by Shreyashi Sanyal and Sruthi Shankar in Bengaluru; Editing by Bernard Orr)