The FTSE 100 Index ended the week down after US jobs figures left traders anxious about the lingering possibility of an interest rate hike by the Federal Reserve later this month.

Official data showed the US added 173,000 jobs in August, fewer than expected but not a weak enough figure to convince investors that a rate hike will be delayed.

London's top-flight fell 151.2 points to 6043, a fall of 2.4 per cent, more than reversing a surge of over 110 points in the previous session.

Retailers were among those on the slide as UK survey figures suggested the high street saw its worst month since the financial crisis in August.

Markets had climbed on Thursday after the European Central Bank indicated it was ready to extend its money-printing stimulus should recent turmoil in China weigh on growth.

But renewed anxiety sent Asian indices lower overnight and there was gloom from Germany, Europe's economic powerhouse, as it reported a larger than expected 1.4 per cent fall in factory orders.

Sentiment was further dampened by the US jobs report. In New York, the Dow Jones Industrial Average was sharply lower at the time of the close in London.

Frankfurt's Dax and the Cac 40 in Paris were both down by almost three per cent.

The stock market falls come at the end of another rollercoaster week for equities.

The FTSE 100 has now finished the first trading week of September well below its closing level of 6247.9 last Friday, building on a dire August which was the worst month for the top-flight in more than three years, amid signs of a slowdown in China.

In currency markets, sterling has been under pressure against the US dollar in recent days on fears that UK growth is slowing.

The pound was a cent down against the greenback in the latest session, at a little under 1.52. It also fell a cent against the euro, at a little below 1.37.

In London shares, Next was a big faller after a broker downgrade from Exane BNP Paribas, ahead of its half-year results next week. Shares fell nearly three per cent, or 245p, to 7595p.

It came as figures from accountancy firm BDO signalled gloom for the wider retail sector, showing high street sales down 4.3 per cent year-on-year in August - the worst decline since November 2008.

Shares in Primark owner Associated British Food slipped 58p to 3139p and Dixons Carphone was 18.6p lower at 412.3p.

Elsewhere, online gaming firm 888 Holdings edged higher after it was elbowed out of its takeover of FoxyBingo owner bwin.party after being trumped by a £1.1 billion proposal from Sportingbet owner GVC.

Shares rose 0.5p to 162.5p while bwin fell by 5.2p to 110p. GVC, which is funding the deal through a loan from investment firm Cerberus and a £150 million share placing, fell four per cent, or 18p, to 435p.

The only two risers in the FTSE 100 Index were Hikma Pharmaceuticals up 7p at 2350p and International Airlines Group up 0.5p at 565p.

The biggest fallers in the FTSE 100 Index were Anglo American down 56.5p at 688.5p, Glencore down 7.8p at 123.2p, Antofagasta down 32p at 564.5p and BHP Billiton down 58p at 1052p.