Markets continued to fall on Thursday as concerns over the eurozone falling back into recession coupled with a lack of progress on the US fiscal cliff hit investor confidence.
At close, the FTSE 100 fell 0.8 per cent to stand at 5677.75, while the French Cac 40 and the German Dax were down 0.5 per cent and 0.8 per cent, respectively. The FTSEurofirst 300 ended the day down 1.1 per cent.
The falls comes after the FTSE recorded a loss of 1.1 per cent on Wednesday (14 November).
The eurozone slipped back into recession in the third quarter after contracting 0.1 per cent. This followed a contraction of 0.2 per cent in the second quarter of 2012.
Pennon Group was the biggest faller in the FTSE 100, down 6.2 per cent, closely followed by Wood Group and Resolution, which fell 5.9 per cent and 4 per cent, respectively.
In the US, the Dow Jones was down 0.2 per cent at 16.56 BST.