European stocks subdued as weaker healthcare stocks, oil prices weigh

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 per cent, falling for a second session, while euro zone stocks and blue-chips also fell 0.3 per cent.

The greatest downward pull came from healthcare stocks however. Swiss drugmaker

Roche fell 4.5 per cent after investors were disappointed by findings in its Aphinity study for a key breast cancer treatment.

Medical products company

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

A rift in West Asia 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 per cent 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 per cent, 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)