The FTSE 100 finished lower after a turbulent session, as the value of the pound also slumped.
In the equity markets, domestic-focused companies – such as housebuilders and retailers – had a particularly weak session.
However, a jump in oil and metal prices helped to drive a stronger session for commodity stocks, with metal giant Ferrexpo a top performer after gold and silver prices soared.
London’s top index finished 40.01 points, or 0.48%, lower to end the day at 8,318.24.
Chris Beauchamp, chief market analyst at IG, said: “Today’s gains have taken gold to its third-consecutive record high.
“Geopolitical worries and rising expectations of a Trump win in November continue to boost the commodity, which enjoyed one of its best years in recent memory.
“Oil prices are up too, but after brutal losses over the past two weeks, suggesting this is more like profit-taking than anything else.”
Elsewhere in Europe, the Cac 40 ended 1.01% lower for the day and the Dax index was down 1.02%.
Across the Atlantic, the Dow Jones dipped after the opening bell – but tech stocks helped drive a stronger start to trading for the Nasdaq.
Sterling lost ground as a number of major banks, including Goldman Sachs, predicted more interest rate cuts in the UK over the next year.
The pound was down 0.51% at 1.298 US dollars and down 0.07% at 1.199 euros.
In company news, Hollywood Bowl was in the green after the ten-pin bowling operator said it is expecting its full-year earnings to be higher than analysts’ forecasts.
The leisure business provided a positive outlook after it said it made record sales over the past year as consumers spent more time and money at its bowling alleys.
Shares in the business moved 2.3% higher to 332.5p at the close
Marie Claire publisher Future rebounded on Monday after its shares had dropped heavily in the previous trading session due to the departure of its boss.
The company said on Friday that former Buzzfeed executive chief executive Jon Steinberg was stepping down to relocate to the US following a year-and-a-half in the role.
Nevertheless, shares climbed 7.2% to 852p on Monday as some traders saw an opportunity to buy following Friday’s sell-off.
Midwich shares plunged after the AIM-listed firm said adjusted operating profits for 2024 are due to be significantly lower year-on-year amid particularly weak demand in the German market.
The audio visual products business saw shares fall 17.2% to 265p after it said market conditions had not improved as it hoped.
Elsewhere, the price of oil recovered some ground after hitting a two-week low at the end of last week amid concerns over demand in China.
A barrel of Brent crude oil was up by 1.44% to 74.11 dollars (£57.08) as markets were closing in London.
The biggest risers on the FTSE 100 were Fresnillo, up 44.5p to 747.5p, DS Smith, up 10.6p to 457.6p, BP, up 5.25p to 404.85p, Endeavour Mining, up 23p to 1,895p, and Reckitt, up 48p to 4,824p.
The biggest fallers on the FTSE 100 were Intertek, down 197p to 4,918p, Entain, down 20.2p to 707.2p, easyJet, down 13p to 507.6p, Pershing Square, down 88p to 3,616p, and Prudential, down 16p to 657.4p.