March 4 (Bloomberg) -- European stocks retreated for a fifth day, led by technology companies and automakers, after Intel Corp. cut its profit forecast and PSA Peugeot Citroen said the car market may decline.

STMicroelectronics NV, Europe's biggest semiconductor maker, fell for a fourth day. Chip-equipment maker ASML Holding NV dropped after Goldman, Sachs & Co. cut its share-price estimate on concern orders will slow. Nokia Oyj, of the world's largest maker of mobile phones, decreased as Exane BNP Paribas recommended selling the stock. Peugeot, Europe's second-biggest carmaker, sank the most in four weeks.

The Dow Jones Stoxx 600 Index declined 1.3 percent to 310.26 in London. The index has retreated 15 percent this year on concern losses related to U.S. subprime mortgages and a slowdown in the world's largest economy will curb earnings.

``There isn't the clarity on the economy or earnings for a lot of companies that is needed,'' said Job Curtis, who helps manage about $2.2 billion at Henderson Global Investors in London.

Profit for Stoxx 600 companies will probably rise only 4.5 percent this year, down from 11 percent predicted at the end of 2007, Bloomberg data show.

National benchmarks fell in all of the 17 western European markets that were open except Norway. France's CAC sank 1.4 percent, while the U.K.'s FTSE 100 slipped 0.9 percent. Germany's DAX retreated 2.2 percent. The Stoxx 50 lost 1.5 percent, and the Euro Stoxx 50, a measure for countries sharing the euro, tumbled 1.8 percent.

Slowing Growth

A report today from the European Union's statistics office showed that the region's economic expansion slowed in the fourth quarter, as consumer spending dropped for the first time in six years. Gross domestic product in the euro region rose 0.4 percent from the third quarter, when it increased 0.7 percent.

Bank shares declined as U.S. Federal Reserve Chairman Ben S. Bernanke urged lenders to write down more mortgage debt.

STMicroelectronics fell 4.4 percent to 7.42 euros. Infineon, Europe's second-biggest maker of semiconductors, retreated 5.2 percent to 5.06 euros.

Intel, the world's largest chipmaker, said first-quarter gross margin, the percentage of sales remaining after subtracting the cost of production, will be about 54 percent. That's down from a January prediction of about 56 percent.

ASML, Europe's largest maker of semiconductor equipment, lost 3.9 percent to 15.15 euros as Goldman cut its share-price estimate by 18 percent to 18 euros.

Recommendation Cut

Exane analysts lowered their recommendation on the stock to ``underperform'' from ``outperform,'' citing increased competition and a declining market.

Peugeot dropped 5.9 percent to 49.31 euros, the most since Feb. 5. Chief Executive Officer Christian Streiff said the European car market may fall this year as economies slow. He reiterated ``a slightly more pessimistic outlook'' given last month, when he warned of a ``slight decline'' in sales.

Bayerische Motoren Werke AG lost 3.3 percent to 35.28 euros. The world's largest maker of luxury cars said U.S. sales declined 1.8 percent in February on lower demand for its brand-name vehicles. Michelin & Cie., Europe's biggest tiremaker, decreased 5.3 percent to 62.42 euros.

Nokia dropped for a fourth day, slipping 5.2 percent to 22.11 euros after Exane cut its recommendation on the shares to ``underperform'' from ``outperform.''

`Significant Downgrade'

``The handsets market increasingly looks to be at risk of a significant downgrade,'' analyst Alexander Peterc wrote in a report today, reducing his share-price estimate to 20 euros from 28 euros. Exane last recommended selling Nokia shares three years ago.

UBS AG, Europe's biggest bank, decreased 3.4 percent to 32.08 Swiss francs. HBOS Plc, the U.K.'s largest mortgage lender, sank 2.6 percent to 543.5 pence, a fifth straight day of losses.

Fed Chairman Bernanke, battling the worst U.S. housing recession in a quarter century, in a speech in Florida today urged lenders to forgive portions of mortgages held by homeowners at risk of defaulting.

Bayer AG, Germany's biggest drugmaker, fell 5.8 percent to 47.29 euros after a federal judge in New Jersey invalidated a patent on the contraceptive Yasmin in a victory for generic-drug maker Barr Pharmaceuticals Inc. Bayer said it may appeal yesterday's decision. Yasmin sales in the U.S. were $488.1 million last year.

Admiral Group Plc retreated 16 percent to 845 pence, the steepest drop in the Stoxx 600. The U.K. car insurer and broker that owns price-comparison Web site Confused.com said it won't be able to charge customers more this year. Citigroup Inc. downgraded the stock ``hold'' from ``buy.''

Cable & Wireless

Cable & Wireless Plc sank 12 percent to 157 pence as some analysts questioned whether the U.K.'s second-biggest phone company would meet targets it gave today. The company said sales at the Europe, Asia and U.S. unit will rise 5 percent to 8 percent a year for the next five years and it will meet its cash- flow targets for this year.

``More bearish analysts will no doubt question the achievability of these targets and highlight that they remain some way off,'' Cazenove analyst Paul Howard wrote in a report today.

Premier Foods Plc jumped 7.3 percent to 98.75 pence. The debt-laden U.K. baker of Hovis bread rebounded from a record low after renegotiating bank loans and cutting its dividend to conserve cash.

To contact the reporter on this story: Sarah Jones in London at sjones35@bloomberg.net.

Last Updated: March 4, 2008 12:03 EST