European shares fell on Tuesday, taking their cue from Wall Street, which suffered a steep sell-off following a string of disappointing earnings and outlook statements, according to Reuters. Shares in German drugs distributor Celesio shed 6.5 percent after suitor McKesson failed to garner enough shares to carry through its takeover bid. Trade in Celesio shares rocketed, with the issue logging 130 percent of its 90-day average volume in the first 40 minutes alone. Volkswagen was another big faller, down 2.7 percent, knocked by a UBS downgrade to "sell" from "neutral". At 0842 GMT, the FTSEurofirst 300 index of top European shares was down 0.7 percent at 1,315.71 points, while the euro zone's blue-chip Euro STOXX 50 index was off 0.8 percent at 3,087.98, both retreating from recent five-year highs. The Euro STOXX 50 Volatility index - known as Europe's 'fear gauge' - rose 2.7 percent, signalling a drop in demand for risk.
