* STOXX drops 0.3 pct, down for fourth straight day
* Trump tweet hits drugmakers
* M&A chatter lifts Italy tower firms
* Aggreko plunges on weak outlook
* But well-received results lift Just Eat, Iliad
(Adds details, closing prices)
By Kit Rees and Danilo Masoni
LONDON/MILAN, March 7 European shares fell on
Tuesday as shares in big international drugmakers were hit after
U.S. President Donald Trump tweeted about lowering drug prices.
Also weighing were companies such as Casino and
Aggreko which reported disappointing results, but
merger talk boosted shares in Italian TV tower firms.
The STOXX 600 fell 0.3 percent, setting its fourth
straight session of losses. The pan-European index however
remains close to its 15 month peak hit last week on the back of
a rally fuelled by a brighter economic outlook and a strong
The region's healthcare index was the top drag to
the STOXX, down 1 percent, after Trump said he was working on a
new system to increase competition and bring down drugs prices.
Sector heavyweights such as Novartis, Roche
, Shire and Sanofi all fell between 0.8
and 2.3 percent.
The three biggest fallers on the STOXX all reported results,
with Aggreko tumbling 12.9 percent after the British temporary
power provider reported lower revenues and gave a gloomy outlook
for this year.
French retailer Casino Guichard and bookmaker Paddy Power
Betfair both fell more than 5 percent following poor
Data from Germany added to the downcast mood on Tuesday as
figures showed that Europe's largest economy saw industrial
orders fall 7.4 percent in January, their biggest monthly fall
in eight years due to a slump in domestic and euro zone demand.
Europe's industrial goods and services index ended down
Italian TV towers companies EI Towers and Rai Way
both rose 5.3 percent after local newspaper Il
Messaggero said Rai Way had mandated Citi to examine a possible
takeover of its rival after a failed attempt to merge in 2014.
EI Towers, which is controlled by broadcaster Mediaset
, said it was not aware of any offer.
Other company updates drove gains, with Just Eat
rising 4.6 percent after the online food delivery company posted
nearly doubled its earnings, while French telecoms group Iliad
gained more than 1 percent after a core earnings rose.
The earnings season in Europe has so far been relatively
strong, with 55 percent of companies in major regional markets
posting earnings beats, according to Eikon data.
Traders said market participants were also looking ahead to
the U.S. Federal Reserve's interest rate decision later in the
"We are still quite confident in European markets ...
There's further scope for a bit of a push but we think there's a
bit of a lack of a volume and market participation just because
everybody's sitting on the sidelines waiting for the imminent
announcement from the U.S.," said Berkeley Capital trader John
(Editing by Hugh Lawson)