U.S. political jitters weigh on European shares as M&A, earnings whir in background

LONDON, May 18 (Reuters) - European shares dropped in early deals on Thursday as political upheaval in Washington D.C. continued to weigh, though deal-making activity and earnings updates kept the region's outperformance against global peers intact.

The pan-European STOXX 600

The more defensive utilities and personal & household goods sectors made small gains.

Some of the largest individual stock moves were spurred by fresh M&A action, with shares in Berendsen BRSN.L soaring nearly 27 percent after French laundry firm Elis ELIS.PA made a $2.6 billion offer for the British rival. shares in Swedish debt collector firm Intrum Justitia IJ.ST dropped more than 8 percent after it proposed a string of divestments in order to assuage European Commission concerns over its planned merger with Norwegian rival Lindorff. in Italy's Fiat Chrysler FCHA.MI were also weaker after the U.S. Justice Department said that it was preparing to sue the carmaker over excess diesel emissions as early as this week. the positive side, earnings buoyed shares in Royal Mail RMG.L , which gained around 3 percent after its first quarter results, while luxury goods firm Burberry BRBY.L also rose after its full-year update.