European stocks subdued as weaker healthcare stocks, oil prices weigh – Reuters

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European shares extended their
fall on Tuesday as weaker oil prices, pulled lower by a major
diplomatic rift between Gulf Arab states, gave rise to risk
adversity.

The pan-European STOXX 600 benchmark dropped 0.3
percent, falling for a second session while euro zone stocks
and blue-chips also fell 0.3 percent.

The greatest downward pull came from healthcare stocks
however. Swiss drugmaker Roche fell 4.5 percent after
investors were disappointed by findings in its Aphinity study
for a key breast cancer treatment.

Medical products company Convatec fell 4.8 percent
after Nordic Capital and Avista sold a 250 million share placing
in the stock, raising 805 million pounds ($1.04
billion).

A rift in the Middle East between Qatar and neighbours Saudi
Arabia, United Arab Emirates, Egypt, and Bahrain caused oil to
fall in choppy trading, weighing on commodities-heavy European
markets.

Norsk Hydro fell 1.8 percent after saying exports
from the Qatalum aluminium plant in Qatar, a joint venture with
Qatar Petroleum, were blocked due to the dispute.

Basic resource stocks were down 0.6 percent while
oil and gas stocks also fell.

Spain’s troubled Banco Popular hit another record
low in choppy trading after Barclays cut its price target on the
stock.

The bank’s shares have been rattled of late by fears it
could be wound down by regulators if it fails to find a buyer.
($1 = 0.7732 pounds)
(Reporting by Helen Reid; Editing by Raissa Kasolowsky)