The UK's leading index fell by 1.1 percent on Monday, while the FTSE 250 fell by 1.3 percent.
Intensifying worries over the impact of rising inflation piled pressure on to markets across the world.
London's blue-chip stocks were spared the worst of Monday's price falls, with the index only losing 1.46 per cent, compared to the big four per cent fall seen on Wall Street's S&P 500 index.
Germany's benchmark Dax index fell by 2.25 per cent in early trading, while France's Cac 40 lost 2.1 per cent at the time of writing. The trigger came from fears over a faster pace of monetary tightening from central banks, after U.S. jobs data showed a pick-up in wage growth.
Connor Campbell, financial analyst at Spreadex, said: "The only hope for the markets at the moment is that investors suddenly decide that the sell-off has been a bit overdone - though in a way it is fitting, matching the astonishing, record-breaking recent rise of the global indices with an equally astounding, heart-stopping drop". Central banks respond to rising inflation by raising interest rates.
Consumer staple stocks were the biggest weight on the FTSE, taking a combined 27 points or more off the blue chip index.
'It looks to emanate from a ideal storm of reasons, ' said Mike van Dulken, head of research at Accendo Markets.
He said: "The bloodbath on Wall Street has washed away all the confidence in European markets".
On Monday London's FTSE 100 was down nearly 2% after the first few hours of trading and closed at its lowest level since April of past year.
"For what it's worth, sentiment has improved from overnight pricing which at one point pointed to a 350-point opening loss for the FTSE 100".