By  on October 20, 2011

LONDON European stock markets and company shares lost ground in mid-morning trading over reports of dissent among European Union leaders about a solution to the region’s debt crisis.

Paris’ CAC 40 and Milan’s FTSE MIB saw the sharpest declines at 11:15 CET, falling 1.5 percent each. Frankfurt’s DAX tumbled 1.3 percent, followed by London’s FTSE 100, which fell 1.1 percent.

Retail and luxury shares also tumbled, with the morning’s biggest fallers including Benetton Group, which slid 2.5 percent; Hermès, which sank 2.1 percent; Richemont, which fell 1.8 percent; and Mulberry Group, which retreated 1.5 percent.

The few stocks on the upswing included Carrefour, which advanced 1 percent; Marks & Spencer and Inditex, which each rose 0.5 percent; and Hugo Boss, which rose 0.9 percent.

EU leaders are to hold a summit on Sunday which is aimed at presenting a plan to beef up Europe’s main bailout fund, the European Financial Stability Facility. Earlier this month Germany and France said they were in agreement about a plan, but are now said to be at odds about how to proceed.

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