US STOCKS-Wall St set to open lower as recession worries return

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* U.S. yield curve inversion hits risk appetite
* Coty jumps after raising FY revenue forecast
* Autodesk drops after FY earnings forecast cut
* Futures down: Dow 0.17%, S&P 0.13%, Nasdaq 0.22%

(Adds comments, details; Updates prices)
By Akanksha Rana
Aug 28 (Reuters) - Wall Street was set to open lower on
Wednesday after moves in the U.S. bond market returned investors
to worrying about the risk of a recession as a bruising
U.S.-China trade war drags on.
A key part of the U.S. yield curve, closely watched for
signals on economic downturn, inverted to levels not seen since
2007 on Tuesday, triggering a selloff on Wall Street. US/
While the inversion continued to deepen, the yield on the
30-year government bonds US30YT=RR hovered above its record
low set earlier in the session.
Bank shares were the worst hit on expectations of lower
interest rates. Bank of America Corp BAC.N , Citigroup Inc
C.N , Goldman Sachs Group Inc GS.N and JPMorgan Chase & Co
JPM.N were down about 1% in premarket trading.
"Each time (the yield curve) inverts, people get a little
uncomfortable," said Randy Frederick, vice president of trading
and derivatives for Charles Schwab in Austin, Texas.
"But for it to be a true sign of an impending recession, it
has to invert and stay inverted. We have not seen that yet."
The recent bout of selling has dragged the benchmark S&P 500
.SPX 5.5% away from a record high hit in late July.
Markets have been roiled by the trade war, which was fueled
further after Beijing announced retaliatory tariffs on U.S.
goods last week.
Investors are also awaiting the monthly jobs report and
manufacturing data next week to gauge the pace of interest rate
cuts.
At 8:57 a.m. ET, Dow e-minis 1YMcv1 were down 43 points,
or 0.17%. S&P 500 e-minis EScv1 were down 3.75 points, or
0.13% and Nasdaq 100 e-minis NQcv1 were down 16.5 points, or
0.22%.
Among other stocks, Coty Inc COTY.N surged 4.9% after the
cosmetics maker raised its full-year revenue forecast, betting
on a four-year restructuring plan that involves a multi-billion
dollar write-down of some of its beauty brands and a simpler
organizational structure. Shares of Hewlett Packard Enterprise Co HPE.N jumped 3.6%
after the company beat profit estimates and raised its 2019
adjusted earnings forecast. Autodesk Inc's ADSK.O slumped 11.8% after the AutoCAD
software maker cut its full-year earnings forecast.