Eurostoxx 50:2,849.60 (-37.71) Frankfurt DAX: 7,277.31 (-110.23) Paris CAC: 3,941.58 (-48.24): EUROPEAN STOCKS retreated for a fourth day for its longest losing streak in two months as a report showed an unexpected drop in US housing starts.

Bouygues led a selloff in construction-related companies after the French builder reported a slump in profit. Technology shares also declined as Hewlett-Packard lowered its profit forecast. Vodafone limited losses after posting better than estimated earnings.

European finance ministers for the first time floated the possibility of extending Greece’s debt repayments, saying that last year’s €110 billion rescue has failed to restore the country to financial health.

Bouygues slumped 4.5 per cent to €32.44, its largest decline in two months, after the French building, television and telecommunications company reported an 81 per cent drop in first-quarter profit to €34 million, hurt by a lower contribution from its Alstom stake.

Spain’s Actividades de Construccion and Servicios retreated 2.5 per cent to €31.92, while Cie de Saint-Gobain, Europe’s biggest supplier of building materials, lost 2.6 per cent to €44.13.

ARM Holdings slumped 4.6 per cent to 555½p, as a gauge of technology shares was among the worst performing industry groups in the Stoxx 600. ASML Holding declined 2.4 per cent to €27.81 and SAP slid 1.8 per cent to €43.60.

Hewlett-Packard cut a billion dollars from its sales forecast for the year as consumers hold back buying personal computers. The world’s biggest maker of PCs predicted that it would make full-year sales of $129 billion to $130 billion.

National Bank of Greece surged 4.3 percent to €4.88 as investors speculated that the country’s lenders would make smaller losses if the EU extends the repayment schedule for Greek sovereign debt.

OMV lost 1.6 per cent to €29.47 after central Europe’s biggest oil company announced a €900 million share sale to finance acquisitions in Turkey and Tunisia.

Vodafone rallied, climbing 0.9 per cent to 169.7p after the world’s largest mobile phone company reported a smaller than estimated decline in full-year earnings.

Of the 305 firms that have reported results since April 11th, 58 per cent have beaten analysts' estimates for per-share profit, according to data compiled by Bloomberg. – (Bloomberg)