European shares drop 3 pct; banks, pharma slip

LONDON, Nov 20 (Reuters) - European stocks extended losses in early trade on Thursday, led lower by pharmaceuticals, banks and commodities stocks, as investors remained nervous due to the prospect of a prolonged global economic downturn.

At 0846 GMT, the FTSEurofirst 300 .FTEU3 index of top European shares was down 3.1 percent at 787.20 points. The benchmark index fell to a 5-1/2-year closing low on Wednesday and is down more than 47 percent this year.

(Reporting by Atul Prakash)