European shares closed weaker on Friday with AstraZeneca leading healthcare stocks down after a U.S. regulator raised concerns about a number of key new drugs, while a weak dollar and higher oil prices also weighed. European markets broke lower after Wall Street stumbled in early trade, with pharmaceutical stocks under pressure on fears of a tougher approach to drug approvals. By 1631 GMT, the FTSEurofirst 300 index of pan-European blue chips unofficially closed 0.8 percent lower at 1,028.7 points on hefty turnover of around 3.1 billion euros. The Eurotop 300 has climbed about 10 percent in the past three months, buoyed by falling oil prices, a decisive U.S. election result and attractive valuations compared with other assets like government bonds and corporate credit, said Bill O'Neill, a strategist at JP Morgan Fleming Asset Management. "Bond markets are going to be weaker in 2005, I think that is going to be one of the features, partly because of the currency situation ... and also because the market will become more aware that the inflation environment is not as benign as some had thought," O'Neill said. --More 2033 Local Time 1733 GMT
