European shares fall, pulled down by drugmakers

martes 21 de julio de 2015 12:26 GYT

* FTSEurofirst 300 index down 1.1 percent

* Pharmaceuticals drop after Novartis results

* Gold miner Fresnillo rebounds (Adds closing prices, detail)

By Alistair Smout and Atul Prakash

LONDON, July 21 (Reuters) - European shares retreated on Tuesday from their six-week high in the previous session, with healthcare leading the market lower after Novartis reported quarterly incomes below analysts' expectations.

The market extended losses in late trade, with poor U.S. earnings from the likes of IBM putting pressure on Wall Street and a strengthening euro hitting Europe's exporters.

The STOXX Europe 600 Healthcare Index was a top sectoral faller, down 1.5 percent. Novartis dropped 2.1 percent after the Swiss drugmaker reported a weak performance by its eyecare division in the second quarter.

While the euro rallied on Tuesday, Novartis saw its results hit by strong dollar last quarter, which traders said could hurt earnings in general as investors anticipate an interest rate increase by the U.S. Federal Reserve.

"The move in Novartis today is largely down to a strengthening dollar. Some of it was priced in, but it's going to have a continuing effect moving forward," said Mark Foulds, sales trader at ETX Capital.   Continuación...