European Shares Seen Lower, Morgan Stanley Eyed

European shares were set to open lower on Wednesday, with investors focusing on banking stocks ahead of results from Morgan Stanley.

Bookmakers expected Britain's FTSE 100 to open down 12 to 20 points, Germany's DAX down 5 to 20 points and France's CAC down 6 to 14 points.

U.S. stocks fell after Goldman Sachs warned banks would have to raise as much as $65 billion in capital to shore up balance sheets, but Asian stocks were higher and oil fell for a fourth day on Wednesday, potentially relieving inflation fears.

European Central Bank governing council member Yves Mersch said on Tuesday that there was a "possible certainty" of a rate rise in July but downplayed the possibility of a series of hikes.