* 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 Wednesdayas worries of a looming global recession kept investors frommaking bold bets, while a dive in the pound over fears of adisorderly Brexit pushed British stocks higher.
The pan-European STOXX 600 index ended 0.2% lowerparing deep losses from the morning, helped by London'sexporter-heavy FTSE 100 as sterling tumbled afterPrime Minister Boris Johnson announced plans to suspendparliament.
Johnson's move, approved by Queen Elizabeth, limits theBritish parliament's ability to derail his Brexit plans, stokingfears of an economically disruptive no-deal departure from theEuropean Union on Oct. 31.
"Although he is using normal parliamentary procedure, what'sdifferent is the accusation that it is a device to limit theability of those who oppose a no-deal Brexit to debate andplan," said Ken Odeluga, market analyst at City Index in London.
UK house-builders were the hardest hit on worries that ahard Brexit would damage the British economy. Persimmon,Berkeley, Barratt Developments and TaylorWimpey were the biggest decliners on the FTSE 100, down3% to 5%.
Dublin stocks sensitive to Brexit news fell 1.3%with Irish low-cost carrier Ryanair falling nearly 2%.
The picture was more mixed for the rest of Europe, withGermany's trade-sensitive DAX ending lower, butbank-heavy Madrid stocks finishing in the positiveterritory.
Milan stocks ended flat, reversing earlier lossesas Italy appeared to be nearing the end of its latest politicalturmoil with the opposition Democratic Party (PD) saying it wasready to form a coalition with the 5-Star Movement.
A majority of European sub-sector indexes fell, withtechnology stocks down 1% after a forecast cut from U.S.software company Autodesk Inc.
Danish companies were at extreme ends of the STOXX 600index. Brewer Royal Unibrew was up 10% onhigher-than-expected second-quarter results and an upbeatoutlook, but jeweller Pandora slumped 6% afterTiffany & Co warned of the potential impact from ongoingprotests in Hong Kong.
RECESSION FEARS
A deep inversion in the U.S. Treasury yield curve rattledinvestors about a possible global recession in the face of aU.S.-China trade war. Bond prices in the United States latertrimmed earlier gains after Wall Street's major indexes turnedpositive.
"While the U.S. economy remains relatively strong, the yieldcurve may in fact be serving its traditional function of notreflecting just the U.S. economy but reflecting the prospects ofthe 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 recordlow.
A sharp escalation in the tariff war between the world's twolargest economies is putting an increasing strain on the globaleconomy with the STOXX 600 on track to end August lower.(Reporting by Agamoni Ghosh, Medha Singh and Amy Caren Danielin Bengaluru; Editing by Arun Koyyur and Gareth Jones)
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