European shares were seen opening slightly lower Wednesday after the U.S. yield curve inversion deepened to levels not seen since 2007, reigniting fears of an impending recession. The FTSE 100 was seen around 8 points lower at 7,082, the DAX was expected to open around 7 points lower at 11,723 and the CAC 40 looked set to edge 11 points down to 5,376, according to IG data. The spread between the 10-year and 2-year U.S. Treasury yield fell to its lowest level since before the financial crisis, with inversions of the yield curve consistently preceding periods of recession. The inversion caused a sell-off on Wall Street which saw the Dow Jones Industrial Average fall by more than 100 points. Stocks in Asia were mixed Wednesday afternoon following the tumultuous session stateside. Back in Europe, investor focus will be attuned to domestic politics in Italy and the U.K. Italy's Five Star Movement (M5S) and Democratic Party (PD) on Tuesday made progress toward a coalition deal, cheering Italian markets. Meanwhile Britain's opposition parties have united in a bid to pass a law forcing Prime Minister Boris Johnson to seek a delay to Britain's departure from the European Union, slated for October 31, and prevent a potentially chaotic no-deal exit. European auto stocks received a boost Tuesday after Beijing said it would relax or remove restrictions on auto purchases in a bid to boost consumption, lifting European automakers exposed to the Chinese market. On the data front, German consumer sentiment data for September is due for publication Wednesday morning, along with Italian business and consumer confidence figures for August. Source: CNBC
