* German 10-year bond yields fresh record low
* Brexit-sensitive UK stocks sink on no-deal fears
* Royal Unibrew jumps on Q2 beat, revised guidance
(Recasts throughout, changes comments, updates to close)
By Agamoni Ghosh
Aug 28 (Reuters) - European shares inched lower on Wednesday
as worries of a looming global recession kept investors from
making bold bets, while a dive in the pound over fears of a
disorderly Brexit pushed British stocks higher.
The pan-European STOXX 600 index .STOXX ended 0.2% lower
paring deep losses from the morning, helped by London's
exporter-heavy FTSE 100 .FTSE as sterling GBP= tumbled after
Prime Minister Boris Johnson announced plans to suspend
parliament. BRXT
Johnson's move, approved by Queen Elizabeth, limits the
British parliament's ability to derail his Brexit plans, stoking
fears of an economically disruptive no-deal departure from the
European Union on Oct. 31.
"Although he is using normal parliamentary procedure, what's
different is the accusation that it is a device to limit the
ability of those who oppose a no-deal Brexit to debate and
plan," said Ken Odeluga, market analyst at City Index in London.
UK house-builders were the hardest hit on worries that a
hard Brexit would damage the British economy. Persimmon PSN.L ,
Berkeley BKGH.L , Barratt Developments BDEV.L and Taylor
Wimpey TW.L were the biggest decliners on the FTSE 100, down
3% to 5%. .L
Dublin stocks .ISEQ sensitive to Brexit news fell 1.3%
with Irish low-cost carrier Ryanair RYA.I falling nearly 2%.
The picture was more mixed for the rest of Europe, with
Germany's trade-sensitive DAX .GDAXI ending lower, but
bank-heavy Madrid stocks .IBEX finishing in the positive
territory.
Milan stocks .FTMIB ended flat, reversing earlier losses
as Italy appeared to be nearing the end of its latest political
turmoil with the opposition Democratic Party (PD) saying it was
ready to form a coalition with the 5-Star Movement. A majority of European sub-sector indexes fell, with
technology stocks .SX8P down 1% after a forecast cut from U.S.
software company Autodesk Inc ADSK.O .
Danish companies were at extreme ends of the STOXX 600
index. Brewer Royal Unibrew RBREW.CO was up 10% on
higher-than-expected second-quarter results and an upbeat
outlook, but jeweller Pandora PNDORA.CO slumped 6% after
Tiffany & Co TIF.N warned of the potential impact from ongoing
protests in Hong Kong.
RECESSION FEARS
A deep inversion in the U.S. Treasury yield curve rattled
investors about a possible global recession in the face of a
U.S.-China trade war. Bond prices in the United States later
trimmed earlier gains after Wall Street's major indexes turned
positive. US/
"While the U.S. economy remains relatively strong, the yield
curve may in fact be serving its traditional function of not
reflecting just the U.S. economy but reflecting the prospects of
the global economy as well," said Odeluga.
Bond market gains were still intact across the euro zone,
with Germany's 10-year bond yields at a fresh record
low. GVD/EUR
A sharp escalation in the tariff war between the world's two
largest economies is putting an increasing strain on the global
economy with the STOXX 600 on track to end August lower.