LONDON — European markets tumbled in midmorning trading Thursday after Chinese stock markets were forced to halt trading for the second time this week.
Shanghai’s stock market plummeted 7.3 percent in early trade Thursday morning, once again triggering the country’s newly installed circuit-breaker mechanism, which suspends trade for the remainder of the session.
In Europe, the DAX in Frankfurt lost the most ground, sinking 3.2 percent to 9,892.51, followed by the CAC 40 in Paris, 2.7 percent to 4,361.37. The FTSE MIB in Milan and the FTSE 100 in London were each down 2.6 percent to 19,880.78 and to 5,918.78, respectively.
The euro traded at $1.08, while the pound fetched $1.46 and the Swiss franc equaled $0.99 at 11:25 a.m. CET.
Retail and luxury stocks were mostly down, with the exception of Marks and Spencer, which was flat at 4.39 pounds following the announcement that chief executive officer Marc Bolland would quit his post in April, at the end of the 2015-16 fiscal year.
Bolland will be replaced by Steve Rowe, as the British retailer struggles to revive its clothing and general merchandise business amid a long streak of shrinking sales.
Shares in MySale Group were up 1.1 percent to 0.44 pounds, while French Connection climbed 7.6 percent to 0.41 pounds.
Among the morning’s biggest fallers were Salvatore Ferragamo, 3.6 percent to 19.07 euros; Metro AG, 4.4 percent to 26.35 euros; Burberry Group, 4.2 percent to 10.52 pounds; Gemfields, 6.4 percent to 0.44 pounds; Italia Independent Group, 4.6 percent to 24.18 euros, and Kering, 3.3 percent to 145.30 euros.
Investors are wary about the health of the Chinese economy on the back of weak manufacturing data released earlier this week.