A DISMAL week for the FTSE 100 Index ended with the top-flight enduring another steep fall after a previous session that saw it plunge to a one-year low.
It was the fourth day in a row of declines as blue-chip shares were again hit by fears over the health of the eurozone economy.
A slide in oil prices and worries over the spread of the Ebola virus also impacted the performance as the FTSE 100 tumbled by 1.4 per cent, or 91.9 points, to 6340, leaving it nearly three per cent down over the week.
Germany's Dax was more than two per cent lower on the day, extending its losses for the week to more than four per cent, while France's Cac 40 also dropped steeply, by nearly two per cent.
The slump has been triggered by recession fears in Europe, particularly after it emerged Germany's exports sank 5.8 per cent in August.
These figures had spurred Wall Street's worst day in the previous session, with the Dow Jones Industrial Average off two per cent, though it was flat at the time of the close in London yesterday.
Investors are now hoping the start of the third quarter earnings season in America will offer some cheer after a dismal few weeks for markets.
The pound also took a battering on fears that the knock-on effect from the eurozone crisis will delay the timing of the first hike in interest rates.
Sterling fell a cent against the greenback at just over 1.60 US dollars and was flat against the single currency at 1.27 euros.
Worries over the effect of eurozone woes on the UK were highlighted as official trade figures showed goods exports fell £700 million, or 2.8 per cent, in August to £23.2 billion, with the figure on a three-month basis the largest decline since March.
In equities, mining stocks were under pressure as global demand fears caused a slide in commodity prices.
Tullow Oil was the biggest faller as it dropped eight per cent or 45p to 526p. Rio Tinto, whose shares started the week on the front foot due to Glencore's interest in a potential £10 billion merger, was down 88p to 2965p.
Glencore dipped 9.5p to 312.2p.
Confidence in travel stocks was again impacted as governments announced measures to curb the spread of the Ebola virus.
First Choice owner TUI Travel, which is merging with its German parent company, fell four per cent or 13.1p to 343.8p.
Cruise ship operator Carnival was three per cent cheaper - off 61p to 2207p - and British Airways owner International Airlines Group fell 7.6p to 325.4p despite the recent decline in oil prices.
The biggest risers on the FTSE 100 Index were AstraZeneca, up 90p to 4300p, Persimmon up 15p to 1291p, Aberdeen Asset Management up 2.7p to 396p and easyJet up 7p to 1348p.
Biggest fallers were Tullow Oil down 45p to 526p, Hargreaves Lansdown off 38.5p to 884p, Weir Group down 94p to 2206p and TUI Travel down 13.1p to 343.8p.
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