THE London markets extended their losses, on the back of slumps across housing and travel stocks.
The FTSE 100 closed the trading session down 37.74 points at 7,310.88 points.
Disappointing Rightmove housing data, which showed a weakening of house prices in May, pulled down the likes of Barratt, Taylor Wimpey and Berkeley.
Fiona Cincotta, senior market analyst at City Index, said: "Housebuilders and travel stocks dominated the lower reaches.
"With Brexit uncertainty remaining elevated it's difficult to see house demand and therefore prices moving higher in the near term."
Stocks across Europe plummeted on Monday, as investors again once again became spooked over US-Chinese trade tensions
The FTSE 100 fell less than its European counterparts thanks to cushioning from the low value of the pound and a rally in oil prices.
The German Dax slumped by 1.61% and the French CAC fell by 1.46%.
The pound rebounded slightly after its recently plunge in value, rising on the back of Prime Minister Theresa May's optimism about getting her latest Brexit deal over the line.
The pound rose 0.04% to 1.272 versus the US dollar and slipped 0.02% to 1.139 versus the euro.
In stocks, Estate agent Foxtons saw shares dive after it said there was no improvement to a "very challenging" London property market in recent trading, as buyers are put off by Brexit uncertainty.
It came as the London-listed company reported revenue of £23.8 million for the three months to March 31, down from £24.5m this time last year.
Shares in Foxtons, which reported a decline in sales revenue from £8.2m to £7.1m in the period, fell by 2.8p to 57.2p.
Shares in Ryanair slid after the airline unveiled a hit to profits amid turbulence in the aviation industry.
The group's full year profits have fallen 29% to €1.02 billion (£890m), while it also reported a decline in fares of 6% in the year to March 31 2019.
Shares in the budget airline were down 0.51 euros at 10.29 euros.
Elsewhere, City Pub Group rose marginally after sales jumped by more than a third since the start of the year.
The pub operator, which owns 45 sites, reported a 35% surge in sales for the 19 weeks to May 12 2019, as it was buoyed by new openings.
Its shares were up by 1.5p at 229p at the close of trading.
Shares in Low & Bonar dropped after the firm warned of a hit to its full-year performance and said its boss is to step down.
The building materials company announced the departure of chief executive Philip de Klerk on Monday, after the board decided a "change of leadership" was required.
Share in Low & Bonar were down 3.5p at 10.9p.
The price of oil has risen after Saudi Arabia suggested that OPEC is likely to maintain its production cuts.
The price of a barrel of Brent crude oil rose by 0.1% to 72.1 US dollars.
The biggest risers on the FTSE 100 were Vodafone Group, up 2.1p at 126.4p, Imperial Brands, up 25.5p at 2,187.5p, Evraz, up 6.6p at 575.6p, and Fresnillo, up 6.2p at 737.2p.
The biggest fallers on the FTSE 100 were Coca-Cola HBC, down 192p at 2,672p, Tui, down 53.2p at 775p, Barratt Developments, down 26.8p at 586.8p, and Taylor Wimpey, up 6.1p at 171.5p.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules here