Europe stocks fall in early trade, drugmakers weigh

European shares moved lower in early trade on Thursday, snapping a three-session winning run on renewed concerns over the health of the global economy and on uncertainties surrounding Washington's auto rescue plan.

By 0810 GMT the pan-European FTSEurofirst 300 index was down 0.5 percent at 855.81 points.

Pharmaceuticals extended losses from the previous session, when they ended weaker after the European Commission offered concessions to companies reselling prescription drugs.

GlaxoSmithKline, Novartis, AstraZeneca and Sanofi-Aventis were down between 0.6 percent and 1.5 percent.

The U.S. House of Representatives approved rescue plan legislation on Wednesday to help embattled U.S. automakers, but the plan has to be approved by the Senate where prospects for passage appeared grim.

BMW, Peugeot and Fiat were down 1.5 percent to 3.6 percent.

Investors were bracing for comments from European Central Bank President Jean-Claude Trichet for any clues on future interest rate moves.

Euro zone government bonds opened lower on Thursday after ECB Executive Board member Juergen Stark said the bank does not have a lot of room for manoeuvre after its interest rate cut last week.

Heavyweight energy stocks were outstanding gainers as oil rose above $44 a barrel on Thursday, after adding more than 3 percent overnight on signs that Saudi Arabia has slashed January supplies ahead of next week's OPEC meeting.

BP, Royal Dutch Shell and Tullow Oil were up between 0.7 percent and 7.4 percent.

Across Europe, the FTSE 100 index was down 0.5 percent, the German DAX index was down 0.8 percent and France's CAC index was down 0.5 percent.