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The FTSE 100 shed 43 points on opening, a fall by 1.1 per cent to 4,119.62.
Resource stocks were at the forefront of the decline as concerns about demand prospects became pessimistic.
Matt Buckland of CMC Markets commented: "With speculation that this could be the worst reading in 30 years, traders certainly have cause to be cautious and again the question has to be asked as to whether a test of the sub-4,000 level on the FTSE could be seen again soon."
Analysts at Bank of New York Mellon said that while the danger of full-scale financial meltdown had subsided, investors are not "surveying the bleak landscape that has been left".
Stock traders are awaiting the release of non-farm payroll data in the US which is expected to show renewed weaknesses in the American job market
