* FTSEurofirst 300 falls 1.1 pct; fourth week of losses
* Drugmakers suffer on bleak outlook
* Financials slip; uncertain corporate earnings weigh
* Energy shares track weaker oil prices
By Brian Gorman
LONDON, July 10 (Reuters) - European shared closed lower on
Friday, notching up a fourth straight week of losses on worries
about corporate earnings and the pace of economic recovery, with
drugmakers and banks suffering most.
The FTSEurofirst 300 <> index of top European shares
fell 1.1 percent to 814.29 points, its lowest close since April
28. Over the week, it fell 3.4 percent, but is still up more
than 26 percent from the record low it hit on March 9.
Drugmakers were among the biggest losers. GlaxoSmithKline
<GSK.L>, Novartis <NOVN.VX>, Shire <SHP.L>, AstraZeneca <AZN.L>,
Roche <ROG.VX> and Sanofi-Aventis <SASY.PA> fell between 1.1 and
2.4 percent.
Next week, Novartis will be the first of the sector's major
players to report second-quarter earnings.
Pharmas initially fared better in the downturn than other
sectors but have begun to underperform, and bleak prospects of
more competition, problems getting new drugs to market and
cheaper medicines are looming on investors' radars.
[]
U.S. consumer sentiment soured in early July, slipping to
its weakest since March, when confidence in the financial sector
and economy were at a low ebb, the Reuters/University of
Michigan Surveys of Consumers showed on Friday.
Consumers' escalating concerns about an extended economic
downturn, job security and erosion of wealth were the main
factors depressing sentiment, the survey said.
Its preliminary index of confidence for July fell to a
reading of 64.6 from the final reading for June of 70.8.
[]
"The Michigan number was a bit of a disappointment," said
Mike Lenhoff, chief strategist at Brewin Dolphin Securities, in
London.
"But second-quarter earnings have become more important than
ever, as the market is focused on recovery. Expectations have
been revised down so much, that earnings may end up surprising
some people on the upside."
OILS FALL
Energy stocks slipped, as crude prices <CLc1> fell more than
2 percent to $59.10 a barrel. BP <BP.L>, Royal Dutch Shell
<RDSa.AS>, BG Group <BG.L>, StatoilHydro <STL.OL> and Total
<TOTF.PA> shed 0.6-1.7 percent.
Sentiment also weakened following a downbeat earnings
outlook from U.S. oil major Chevron <CVX.N> after Wall Street
closed on Thursday, warning of weaker refining margins.
Telecoms to fall included Vodafone <VOD.L> and Telefonica
<TEF.MC>, down 1.5 and 1.2 percent, respectively.
Among banks, UBS <UBSN.VX> fell 2.4 percent ahead of a
high-stakes trial in the United States next week that could
force it to reveal secret client data. []
Norway's DnB NOR ASA <DNBNOR.OL> fell 3.6 percent after
posting a bigger-than-forecast drop in second-quarter profit
after losses and write-downs at its Baltic operations.
[]
Banco Santander <SAN.MC>, BNP Paribas <BNPP.PA>, HSBC
<HSBA.L> and UniCredit <CRDI.MI> fell between 1 and 3.7 percent.
UK insurer Aviva fell yet again, down 4.9 percent, extending
its decline for the week to more than 18 percent on worries
about cutting its dividend. Allianz <ALVG.DE> fell 1.8 percent.
Retailing was one of the few sectors to gain. Tesco
<TSCO.L>, Morrison <MRW.L> and Marks & Spencer <MKS.L> rose
between 1.7 and 2.5 percent.
Around Europe, UK's FTSE 100 index <>, Germany's DAX
<> and France's CAC 40 <> closed between 0.8 and 1.4
percent lower.
Wall Street was lower as European bourses were closing. The
Dow Jones <>, S&P 500 <.SPX> and Nasdaq Composite <>
were down between 0.4 and 0.9 percent.
(Additional reporting by Atul Prakash; editing by Simon
Jessop)
