European shares fall, hit by weak earnings and banks

jueves 28 de enero de 2016 08:39 GYT

* Pan-European falls 0.3 pct, down 7 pct year-to-date

* Roche lower after results miss expectations

* Oil stocks higher as crude steadies above $33 (Adds quotes, detail, recasts)

By Alistair Smout and Danilo Masoni

LONDON/MILAN, Jan 28 (Reuters) - European shares fell on Thursday as disappointing earnings from Roche weighed on the healthcare sector and euro zone banks also came under pressure.

By 1200 GMT, the pan-European FTSEurofirst 300 index was 1.3 percent lower at 1,323.96 points, while the euro zone's blue chip Eurostoxx 50 index also fell, down 1.5 percent.

Roche dropped 4 percent after 2015 net profit from Swiss drug maker fell short of expectations in 2015 and the company's forecast of an improvement this year met a sceptical market response. Its dividend also disappointed.

Analysts at Deutsche Bank said Roche had been weighed down by its diagnostics business, high tax and foreign exchange effects. It however reiterated its buy rating on the stock saying underlying results were of good quality.

"There are big FX headwinds from last year which are filtering through now... and that's going to be the trend for Swiss drugmakers and for Swiss stocks more generally," said Joe Rundle, head of trading at ETX Capital.   Continuación...