Markets fell sharply today after a World Bank report slashed world growth forecasts for this year - causing a sharp drop in the price of copper that hammered a clutch of London-listed commodities firms.
Sentiment was also darkened by figures showing a sharp drop in US retail sales, denting hopes for the resurgence of the world's largest economy.
The FTSE 100 Index fell more than 2%, or 153.7 points, to 6388.5, while on Wall Street the Dow Jones Industrial Average lost more than 1%.
Meanwhile, Germany's Dax and France's Cac 40 were also off by more than 1% despite a court ruling that appears to pave the way for a round of quantitative easing stimulus for the eurozone.
In currency markets, the greenback fell on the US retail sales data, helping the pound to climb a cent to more than 1.52 dollars. Sterling was also ahead against the euro at just over 1.29.
The FTSE 100 was heavily hit by the fall in the copper price to a five-year low after the World Bank slashed its outlook for world growth in 2015 from 3.4% to 3%, citing stagnation in Europe and Japan and a slowdown in China's expansion.
Shares in commodities giant Glencore tumbled to an all-time low, closing 9%, or 25p, down at 244p. Anglo American was also off 9%, or 103p, at 1042.5p.
Chilean miner Antofagasta was 34p down at 675p while BHP Billiton tumbled 72p to 1285p and Rio Tinto was 115.5p lower at 2804.5p, with Mexico's Fresnillo down 15.5p to 816p.
BT was among just a five stocks making gains, after a bullish note on the telecoms sector from analysts at HSBC. Shares rose 1.6p to 401.4p.
Supermarket Tesco was also ahead as it continued to rally in the wake of last week's better-than-expected Christmas trading figures and shake-up announced by new boss Dave Lewis. The stock climbed 1%, or 2p, to 214p.
Rival Morrisons, which added 4% in the previous session as it announced the departure of chief executive Dalton Philips, lost most of the gains as investors reflected on its continuing sliding sales over the festive period.
Britain's fourth biggest supermarket, which is now searching for a new boss, was down 3%, or 5.7p, to 179.1p.
Elsewhere in the retail sector, SuperGroup jumped 10% in the FTSE 250 Index after it said like-for-like sales lifted 12.4% in the 11 weeks to January 10, albeit against softer comparatives.
The Superdry business, which climbed 84.5p to 896p, recently issued a profit warning due to the autumn weather but now expects to meet revised full-year profit targets of between £60 million and £65 million.
Game Digital slumped 30% or 106p to 242p after the video games business said group sales were 5.4% down for the period covering the 11 weeks to January 10 and including a round of promotions starting on Black Friday at the end of November.
The biggest risers in the FTSE 100 Index were Royal Mail up 6.3p to 434.3p, Tesco up 2p to 214p, Hammerson up 4p to 631p and BT up 1.6p to 401.4p.
The biggest fallers in the FTSE 100 Index were Glencore down 25p to 244p, Anglo American down 103p to 1042.5p, Coca-Cola HBC down 69p to 1069p and BHP Billiton down 72p to 1285p.
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