(Reuters) – European shares fell sharply and the euro hit a two-month low on Friday, as weak economic data from Italy, Franceand Britain added to concerns about imminent U.S. spending cuts and political stalemate in Rome.

Wall Street was also expected to open lower as investors waited for U.S. government budget cuts due to take effect at the end of the day, and for a flurry of new data that will help gauge the temperature of the world’s biggest economy.

New surveys from Europe hit investor confidence. They showed British manufacturing shrank unexpectedly in February, while France’s factories suffered their 20th consecutive monthly fall in activity and industrial activity in Spain and Italy deteriorated again.  Read more