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European Shares Set to Tumble on US Woes

European shares are expected to fall again on Wednesday, after posting steep falls the day before as concern over the potential for a U.S. recession overshadows developments on the
corporate front.

Financial bookmakers in London expect Britain's FTSE 100 index to open 20 to 24 points lower, Germany's DAX to open 31 to 46 points lower and France's CAC-40 to open 22 to 41 points down.

The FTSEurofirst 300 index of top European shares closed down 2.6 percent on Tuesday after U.S. investment bank Citigroup posted a record $10 billion quarterly loss, cut its dividend and said it would receive a capital injection of $14.5 billion. A surprise fall in retail sales added to the view the U.S. economy may be heading for recession.

Tuesday saw the largest one-day fall in the broader European index since mid-August, which hit its lowest level in 15 months and is now on track for its sixth successive weekly fall, its worst run since a 12-week stretch of declines in mid-1998.

Tech stocks may come under pressure in Europe later on after Intel on Tuesday missed Wall Street forecasts when it reported quarter results, sending its shares down 15 percent in after-hours trade.

The likes of Infineon and ASML, which reports results later in the day, could feel the pinch.