Earnings a drag on European shares, though Vodafone boosts FTSE to fresh record

LONDON, May 16 (Reuters) - European shares retreated early on Tuesday as disappointing earnings updates weighed on banks and pharma firms, though a well-received update from Vodafone helped the FTSE 100 touch a record high.

The pan-European STOXX 600 index was down 0.1 percent, and Germany's DAX traded flat.

The FTSE 100 index rose 0.2 percent, however, buoyed by a 3.6 percent rise in Vodafone, which jumped after reporting its full-year earnings.

Healthcare (Shanghai: 603313.SS - news) was among the weakest European sectors, dragged down by a near 8-percent drop in BTG (Frankfurt: 908827 - news) 's shares after the biotech firm published its full year figures.

Likewise disappointing updates also hit shares in budget airline easyJet, support services firm DCC (Frankfurt: DCC.F - news) and lender CYBG (Frankfurt: 42YA.F - news) , which were all weaker.

Banking stocks were the biggest weight, with Spain's Banco Popular down more than 4 percent and UBS falling nearly 2 percent, extending losses from the previous session after Singapore sovereign wealth fund GIC Private Limited cut its stake in the Swiss bank at a loss.

(Reporting by Kit Rees; Editing by Andrew Heavens)