Europe shares fall for 4th straight week

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 , Novartis, Shire, AstraZeneca, Roche and Sanofi-Aventis 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 fell more than 2 percent to $59.10 a barrel. BP, Royal Dutch Shell , BG Group, StatoilHydro and Total shed 0.6-1.7 percent. Sentiment also weakened following a downbeat earnings outlook from U.S. oil major Chevron after Wall Street closed on Thursday, warning of weaker refining margins. Telecoms to fall included Vodafone and Telefonica , down 1.5 and 1.2 percent, respectively. Among banks, UBS 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 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, BNP Paribas, HSBC and UniCredit 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 fell 1.8 percent. Retailing was one of the few sectors to gain. Tesco , Morrison and Marks & Spencer 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 and Nasdaq Composite were down between 0.4 and 0.9 percent. (Additional reporting by Atul Prakash; editing by Simon Jessop) (([e-mail]; [phone]; Reuters Messaging: [e-mail])) "We are still in a place where risk aversion is being taken into account again and the risk of default in the real economy and the corporate sector is going to be re-appraised," said Valerie Plagnol, chief strategist at CM-CIC Securities. "On the whole, it's hard to be really bullish. We are caught in a situation where indeed we have left behind us probably the worst of the recession. Nevertheless, macroeconomic numbers are very weak," she said. With the summer holidays kicking off in the northern hemisphere and the second-quarter earnings season beginning, market and fund flows suggested many investors were heading to the sidelines, according to fund tracker EPFR Global. Stocks globally enjoyed a powerful rally in the second quarter but have since run out of steam. Miners felt pressure as prices of key base metals slipped. BHP Billiton, Anglo American, Antofagasta , Xstrata and Eurasian Natural Resources fell 0.2 to 3.2 percent. Anglo-Australian miner Rio Tinto fell 3.5 percent. Chinese security officials accused four detained staff of the company of bribery. MIXED ECONOMIC DATA Global macroeconomic data continued to paint a mixed picture and forced investors to trade cautiously, analysts said. Japanese wholesale prices fell at a record pace in June, showing that the world's No. 2 economy is still struggling with slack demand despite some recent tentative signs of improvement in its manufacturing sector. But French industrial output posted a surprise rise in May, helped by production of energy and cars. "There is a lack of impulse, full stop," said Giuseppe-Guido Amato, strategist at brokerage Lang & Schwarz in Germany. German chipmaker Infineon was up 0.8 percent. It plans to raise 725 million euros ($1.01 billion) in a capital increase with the backing of U.S. investor Apollo, which could get a stake of up to 29 percent. The DJ STOXX Telcom Index dropped 1.2 percent, with Telekom Austria falling 2.9 percent, as UBS pointed to uncertainty about its outlook for the current year following an interview with the company's chief executive. Later in the day, investors will be focus on U.S. macroeconomic data, with trade figures due at 1230 GMT. French carmaker Renault fell 1.8 percent. Its CEO Carlos Ghosn expects 2010 to be "as difficult as 2009" as the crisis in the worldwide auto industry continues, he told Europe 1 radio. 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