Eurostoxx 50: 2,091.09 (–47.15) Frankfurt DAX: 5,216.71 (–159.99) Paris CAC: 2,850.55 (–76.28)EUROPEAN STOCKS fell for a third day yesterday, the longest losing streak in four weeks, as policymakers signalled they may renegotiate terms of Greece's bailout, deepening concern about the impact of the debt crisis.

The benchmark Stoxx Europe 600 Index fell 2.8 per cent in London, the lowest level in a week.

The Stoxx 600 has fallen 25 per cent from this year’s peak in February as European and US economic reports trailed forecasts, adding to concern that the global economic recovery is at risk.

Dexia sank 19 per cent to €1.05, the largest drop since March 2009, after its board asked CEO Pierre Mariani to prepare “necessary measures” to fix the company’s “structural problems” after Europe’s government-debt crisis worsened. The shares rebounded from a 38 per cent drop as the French and Belgian governments pledged to support the bank.

BNP Paribas, France’s biggest bank, declined 5.1 per cent to €27.20, and Société Générale retreated 4 per cent to €18.21.

Dexia, BNP Paribas and Société Générale are resisting pressure from regulators to accept more losses on their holdings of Greek government debt amid criticism they have not written down the bonds sufficiently.

Deutsche Bank slipped 3.5 per cent to €24.85. Germany’s largest lender dropped its 2011 profit forecast and announced plans to cut 500 jobs as market volatility and unexpected costs on an indirect tax position weighed on third-quarter earnings.

National Bank of Greece, the nation’s biggest lender, plunged 14 per cent to €2.19, the lowest in 15 years.

Alpha Bank and Piraeus Bank fell 9.8 per cent to €1.10 and 18 per cent to 36 cent, respectively.

Air France sank 8.7 per cent to €4.85, its lowest price since at least December 1991.

International Consolidated Airlines, the parent of British Airways, declined 3.3 per cent to 149.40p.

Volkswagen, Europe’s largest car maker, lost 6.6 per cent to €89.02.

Renault, France’s second-largest automaker, sank 7.3 per cent to €22.57 and Fiat Industrial, the truck and tractor unit spun off from Italian car maker Fiat, plunged 8 per cent to €4.91, the lowest in nine months. – (Reuters)