LONDON — A diplomatic crisis in the Gulf region and the prospect of a hung parliament following British national general elections on June 8 put pressure on Europe’s markets, which were all down in mid-morning trading on Tuesday.
The CAC 40 in Paris retreated 0.5 percent to 5,283.72, followed by the DAX in Frankfurt, 0.4 percent to 12,773.56. The FTSE 100 in London and the FTSE MIB in Milan both fell 0.3 percent, to 7,505.44 and to 20,652.38, respectively.
The euro traded at $1.13, while the pound fetched $1.29 at 10:18 a.m. CET.
Retail and luxury stocks were mostly down, with the morning’s biggest fallers including Yoox Net-a-porter Group, 1.7 percent to 24.47 euros; Superdry parent Supergroup, 1.1 percent to 15.25 pounds; Burberry, 2.9 percent to 17.58 pounds; Tod’s, 1.1 percent to 60.70 euros; Next, 1.1 percent to 43.52 pounds, and Boohoo.com, 1.6 percent to 2.21 pounds.
Among the few stocks that gained ground were Gemfields, 3.5 percent to 0.37 pounds; French Connection, 3.8 percent to 0.39 pounds, and Salvatore Ferragamo, 1.9 percent to 6.98 euros.
A crisis in the Gulf region has begun to unfold with several countries severing diplomatic ties with Qatar, accusing the country of funding Islamic extremism, which Qatar denies. Qatar’s isolation could have a major impact on trade, retail, fashion and luxury goods sales across the region.
Britain is still coming to terms with the aftermath of its third terrorist attack in four months. On Saturday, three armed men killed seven people and injured 48 on London Bridge and in Borough Market in central London.
U.K. political parties, preparing for a national general election on Thursday, are making a final push, although the vote could result in a hung parliament making it difficult for any future prime minister to succeed in Brexit negotiations.