Wall Street showed signs of recovery on Monday after four consecutive losing sessions, with all three major stock indices clinching some gains.
Investors' focus on Tuesday would be on the U. S. where a flurry of second-tier economic data was scheduled for release.
European shares extended losses on Monday as worries about China's troubled property sector continued, with developer Evergrande saying it would not be able to complete a planned restructure, while rising oil prices and weak German survey data also weighed on sentiment.
UK equities dropped on Monday owing to heavy falls in the mining, gambling and tobacco sectors weighing on markets, as investors scaled back their appetite for risk in the facing of surging bond yields and a higher interest-rate outlook.
Financial markets' focus over the last week of September would be on the latest consumer price data due out in the single currency bloc.
Caledonia Investments was on the list of director purchases on Monday after a member of its board picked up almost 3,000 shares.
Shares in gambling outfit 888 Holdings slumped almost 8% on Monday after FTSE 100 rival Entain warned on third-quarter revenues due to regulatory headwinds, slow sales in Italy and Australia and adverse sports results in September.
Shares in Ladbrokes owner Entain slumped on Monday as it said third-quarter net gaming revenue (NGR) would be down by by high single-digit percent, driven by adverse sporting results during September, tighter gambling regulation and weaker growth in Australia and Italy.
Just eight names were trading in positive territory on the FTSE 100 on Monday afternoon as investors scaled back their appetite for risk, with the mining stocks, Entain and Burberry bearing the brunt of the selling pressure.
US stocks were swinging between gains and losses early on with little newsflow to drive the direction either way, with the S&P 500 taking a breather after hitting a three-month low last week.
Edison sees "good upside" at Games Workshop if things go to plan with the latest Warhammer product release, following a strong start to the year for the hobby miniatures company.
German business morale declined for the tenth consecutive month in September, adding to the list of data showing Europe's biggest economy was struggling to shake off high inflation, according to data from the Ifo institute's monthly survey.
Tanzania-focussed helium explorer and developer Helium One Global announced the start of drilling at its Tai-3 well on Monday.
Saietta Group reported a 40% rise in turnover in a trading update on Monday, reaching £6m for the 12 months ended 31 March.
Utility-grade energy storage developer Invinity Energy Systems has been selected by the United States Department of Energy (DOE) to supply 84 MWh of its ‘Mistral’ product for projects at six US sites, it announced on Monday.
Empire Metals announced raising £3m before expenses on Monday to support expanding its upcoming drilling programme.
Agriculture-focussed biological products developer Plant Health Care announced Monday that it applied to the Mexican regulatory agency to approve its newest products, PHC25279 and PHC68949.
Crimson Tide reported a 30. 9% improvement in revenue in its first half on Monday, to £3m, while annual recurring revenue jumped 35. 1% year-on-year to £5. 9m.
Falcon Oil & Gas has started drilling the Amungee NW-3H (A3H) horizontal well in exploration permit 98 in the Beetaloo Sub-basin, located in Australia’s Northern Territory, it announced on Monday.
UP Global Sourcing announced the opening of a new showroom in Paris on Monday as part of its drive into the continental European market.