Wall Street stocks slumped again on Thursday with the S&P 500 hitting fresh six-month lows, as US President Donald Trump threatened more tariffs and trade war fears grew.
In London, the FTSE 100 was treading water as gains for mining giants offset losses for most other stocks.
The index moved just 1.59 points higher, or 0.02%, to close at 8,542.56.
Lenders and house builders were among the biggest fallers of the day after new figures showed demand among UK home buyers slowed to its weakest levels last month since November 2023.
The survey by the Royal Institution of Chartered Surveyors indicated that concerns over interest rates, inflation and global events were dampening confidence.
Meanwhile, the US president threatened a 200% tariff on European wine, champagne and spirits after the European Union proposed a retaliatory tariff on American whiskey.
It marks the latest move in the escalating trade war as Mr Trump pushes ahead with his policies, that in recent weeks have seen new tariffs placed on Canada, Mexico and China, and on UK steel and aluminium.
Uncertainty over the impact of these measures has sent waves of turbulence across global stock markets.
In New York, the S&P 500 continued its decline after briefly returning to growth on Wednesday. It was down 1.4%, to its lowest level since September, by the time European markets closed. The Dow Jones was also 1.3% lower.
In Frankfurt, the Dax dropped 0.48%, and in Paris, the Cac 40 closed 0.64% lower.
The pound was down about 0.1% against the US dollar, at 1.295, and more or less flat against the euro, at 1.191.
In company news, shares in Magners cider maker C&C plunged by a fifth after the Irish brewer said it was expecting to report below-target earnings for the year.
The Irish drinks business said sales in January and February had been weaker and consumer confidence was being impacted by the wider economic landscape. Shares in C&C closed 19.1% lower.
Trainline’s share price also took a hit on Thursday despite it making a record amount from ticket sales last year, which was 12% more than the year before.
But it was not enough to assuage concerns over its dominant position in the market being impacted by competition from a Government-owned train operator called Great British Railways.
This could see a rival national ticketing app created under Labour’s proposed simplification of the rail system. Shares in Trainline dropped 13.2%.
The biggest risers on the FTSE 100 were Vodafone, up 3.22p to 73.28p, Antofagasta, up 49.5p to 1,808p, BT, up 3.65p to 156.4p, Airtel Africa, up 3p to 149.9p, and Rentokil, up 6.4p to 326.4p.
The biggest fallers on the FTSE 100 were Melrose Industries, down 21.8p to 496.2p, Hiscox, down 46p to 1,103p, Diploma, down 150p to 3,920p, Croda, down 106p to 3,076p, and Entain, down 20p to 629p.