The FTSE 100 Index was nearing six-week lows to levels not seen since early August.
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Selling was driven by revived prospects of the US Federal Reserve hiking rates next week, and concerns that the European Central Bank and the Bank of Japan may be slowing their monetary policy easing efforts.
Meanwhile, the pound struggled to find a clear direction, trading almost flat at 1.327 against the USA dollar, and 0.19% lower at 1.18 against the euro.
At one stage, the stock prices of all 100 companies listed on the FTSE 100 were trading lower on Monday.
“With little on the economic agenda, a severe bout of panic has struck the global markets, causing the kind of declines not seen since the Brexit”, Connor Campbell, a financial analyst at SpreadEx, said.
Adding to Monday’s jittery markets mood, U.S. Democratic presidential candidate Hillary Clinton fell ill at a September 11 memorial ceremony and had been diagnosed with pneumonia.
But on Friday, US Federal Reserve Bank of Boston President Eric Rosengren renewed speculation of a hike when he said in a speech that higher rates were needed to prevent the economy from overheating.
Stocks dropped globally on Sunday after Mrs Clinton was seen stumbling as she left a 9/11 memorial ceremony in NY.
European shares had ended at their lowest point in two weeks on Monday, as investors fretted over a possible near-term interest rate hike in the United States.
The FTSE has closed at a six-week low, as speculation over a United States interest rate rise and Hillary Clinton’s health troubles rattled investors.
Stock markets were calmer this morning after a turbulent start to the week which saw the FTSE 100 fall to its lowest in more than a month.
ABF added that post-Brexit currency movements would have both positive and negative effects on the group.
ABF said that like-for-like sales at Primark are expected to fall by 2% over the year as warm pre-Christmas weather and a “very cold” March and April dampened its performance. Anglo American, BHP Billiton, Antofagasta and Glencore were amid the biggest fallers on the FTSE 100.
“With concerns still elevated over the health of the global economy and the oversupply woes ensuring oil prices remain depressed, stock markets could be set for a heavy selloff”. Mining and banking stocks are providing the biggest drag on shares so far on the day.
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Pharmaceutical companies AstraZeneca, Shire and Reckitt Benckiser made gains after Jefferies upgraded its view on AstraZeneca, which is developing a new drug meant to treat lung cancer.
