European shares pare gains; pharmaceuticals weigh

LONDON May 27 (Reuters) - European shares gave up most of their earlier gains in afternoon trade on Wednesday as pharmaceutical and energy stocks weighed on the market.

The FTSEurofirst 300 .FTEU3 index briefly extended gains after data showed a 2.9 percent rise in existing U.S. home sales in April, but fell back later.

At 1416 GMT, the index was up 0.1 percent higher at 865.98 points after rising as high as 872.62 and falling as low as 864.44 points earlier in the session.

A trader said that headline number on the housing data was in line, but inventories were uncomfortably high.

The inventory of existing homes for sale rose 8.8 percent.

Pharmaceutical stocks were among top losers on the European index, with AstraZeneca (AZN.L) falling 2.1 percent, GlaxoSmithKnline (GSK.L) down 1 percent and Shire (SHP.L) falling 1.5 percent. (Reporting by Atul Prakash)