Markets were back in the red as nervous investors failed to sustain a rebound at the end of last week.
The FTSE 100 Index saw its largest one-day climb in more than a year on Friday at the end of a turbulent week weighed down by worries over the global economy.
But hopes of a further rise at the start of the new week were short-lived as the top-flight fell 43.2 points to 6267.1, with Germany's Dax and France's Cac 40 suffering steeper declines.
In New York, the Dow Jones Industrial Average was in negative territory after results from computer giant IBM missed analysts' expectations.
On currency markets, sterling made a little headway against the greenback at just over $1.61 amid calls for the Federal Reserve to delay the end of its monetary stimulus programme. The pound was flat against the single currency at just over €1.26.
In London, oil and gas companies were the biggest factor in the latest sell-off as oil prices resumed their recent slide. The price of Brent crude for December delivery fell by more than one per cent to nearly $85 a barrel. BG Group was the biggest faller, down four per cent or 40.5p to 1024.5p, while Royal Dutch Shell dipped two per cent or 51.5p to 2189p and BP fell 6.6p to 421.9p.
Tesco was one of the biggest risers in the top flight on speculation that this week's half-year results will not require a restatement of profits beyond the £250million error reported by the supermarket giant last month.Shares were 4.8p higher at 179.3p, a rise of nearly three per cent.
In contrast, Sainsbury's fell 2.1p to 242.7p and B&Q owner Kingfisher dropped 9p to 290p as another mild weekend of weather dashed hopes of a return to more normal seasonal sales patterns.
Elsewhere in the retail sector, Primark owner Associated British Foods rose after US department store Sears said it had struck a leasing deal with the fashion chain. Shares rose 66p to 2635p.
Holiday firms, which have been hit by fears of Ebola, gained as Nigeria was declared free of the disease. Intercontinental Hotels Group topped the risers' board with a climb of four per cent, or 93p, to 2249p, while British Airways owned International Airlines Group rose three per cent, or 11p to 361.4p. TUI Travel was up 10.1p to 349.2p.
Outside the top flight, shares in Spirit Pub Company jumped nearly 10 per cent after it signalled it was prepared to recommend a cash and shares offer worth £725m from rival Greene King. The stock rose 8.8p to 99.8p, while Greene King was up 7p at 775p.
The biggest risers on the FTSE 100 were Intercontinental Hotels Group, up 93p to 2249p, International Airlines Group up 11p to 361.4p, TUI Travel up 10.1p to 349.2p and Tesco up 4.8p to 179.3p.
The biggest fallers were BG Group down 40.5p to 1024.5p, Kingfisher down 9p to 290p, Tullow Oil down 15.5p to 508.5p and Petrofac down 30p to 1030p.
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