The FTSE 250, seen as a good gauge of the UK economy, fell 0.15% after closing down 1.5% the previous day.

The global sell-off on Wednesday came amid concerns over the US-China trade war and the global economy.

Weak data from Germany and grim signs in bond markets also spooked investors.

As a result, the three main US stock markets closed 3% lower overnight and European stocks fell across the board, while the Nikkei closed 1.2% lower.

On Thursday morning, most European markets stabilised, but then fell, trading down about 0.4%.

Analyst Neil Wilson from Markets.com said the recovery looked "precarious".

"The tentative market recovery in Europe has not held," he said.

"As we indicated earlier, this was always a very precarious bounce and it has died a quick death. Like a 1990s England Test top order it couldn't even make it to lunch. Let's see where we're at by stumps."

Warning sign

Wednesday's retreat by investors was triggered by tremors in bond markets, which were interpreted as a warning sign of a possible recessions in major economies.

The yield on two-year and 10-year Treasury bonds inverted for the first time since June 2007 as investors dived into the longer-term investments.

This meant investors were willing to get lower returns for holding bonds for a longer period in return for an investment they believed was safer.

Usually investors want higher returns for holding bonds for longer, because of the risks involved.

Historically, such bond movements have been a reliable indicator of possible recessions. For example, they preceded the last big global downturn more than 10 years ago.

The UK bond yield curve also inverted for the first time since 2008, while the yield gap between 10-year and two-year German government bonds was at its tightest since the financial crisis.

But speaking to the BBC's Today programme, Kathleen Brooks from Minerva Analysis said the sell-off may have had a simpler cause.

"It's also August," she said. "People are away, so moves can be exaggerated in August."