The FTSE 100 fell 0.7% to 6,947 as Brexit fears, the US tech sell-off and trade war concerns weighed on investor sentiment.
In other parts of the world, stock markets suffered a bigger setback.
In Germany, the DAX declined 1.6% to 11,066 while on Wall Street, the Dow Jones slid 1.5% lower to 24,627 at around 4:45pm UK time.
Brent crude oil slumped 5.2% to $63.31 per barrel as the market worried about increasing supply.
LARGE AND MID CAP RISERS AND FALLERS
Shares in Indivior dropped 46.7% to 109.9p on the news that the US Court of Appeals dropped a preliminary injunction against US rival Dr Reddy’s Laboratories.
Low-cost airline EasyJet fell 5.5% to £11.10, despite its annual profit hitting the top end of its guidance range, as the company reiterated revenue per seat would fall in the first half of the current year.
Shares in global healthcare company BTG rallied 34.1% to 824.7p after Boston Scientific agreed a recommended cash offer of 840p per share, valuing the business at £3.3bn.
Catering company Compass gained 3.4% to £16.41 after the market looked past a modest fall in profit and warmed to a strong performance at its North American division.
Shares in AO World slumped 5.8% to 117p as investors reacted to a reported first half loss with revenue growth of 9.9% and just 5.7% in the UK where AO says its core major domestic appliance market is ‘tougher than expected’.
Mining group Anglo American fell 2.9% to £16.74 after diamond sales at its De Beers unit fell.
Broking house Plus500 rallied 11.2% to £14.29 on fresh guidance that its results for 2018 would beat market expectations.
Instrumentation and controls company Spectris surged 12.4% to £23.65 as sales rose 9% in the four months through October. The company also announced it would review its assets to narrow its focus on more profitable businesses.
Caution on Brexit and a new round of PPI provisions put banking group CYBG on the back foot as it traded 16.9% lower at 206.4p
Plastic piping and ventilation system manufacturer Polypipe Group said its revenue had increased 10.2% in the fourth months through October on a like-for-like basis. Its shares fell 2.3% to 361.6p.
Specialist building products supplier SIG shed 1.9% to 106.1p despite forecasting a ‘significant’ profit improvement in the second half, as margin improvement offset falling revenue.
SMALL CAP RISERS AND FALLERS
Aviation services group John Menzies was flat at 500p after it announced it was continuing to trade ahead of last year and was on track to meets its full-year expectations, though revenue growth had slowed.
A profit warning and dividend cut at KCOM wiped nearly a third of its market cap, leaving the share price dwindling at 64.5p.
Story provided by StockMarketWire.com