Losses for healthcare and oil stocks pushed London's FTSE 100 marginally lower on Tuesday as worries about trade and economic growth continued to dominate markets, while money manager Hargreaves Lansdown was hit by the suspension of one of the Woodford investment funds.
The FTSE 100, initially down half a percent in a continuation of losses on Wall Street and Asian markets overnight, recovered to trade down just 0.1% by 0910 GMT. The FTSE 250 was roughly flat. Britain's two big global drugmakers AstraZeneca and GlaxoSmithKline, much in demand in the previous session as defensive plays against the risk of a deeper global economic slowdown, were the main weight on the blue chip index.
Oil majors also fell, with Shell down nearly 1% even as it forecast an increase to its dividend payouts and raised its free cash flow outlook.
"Further upside in markets could well be challenging unless there is a change to the macroeconomic picture, something that is starting to look increasingly unlikely, given that central banks now appear to be shifting onto a more dovish footing," Spreadex analyst Connor Campbell said.
Worries that President Donald Trump's trade wars with major partners including China and Mexico could tip the global economy into recession were at the heart of a more than 6% fall in major stock markets in May.
The FTSE did better, falling just 3.5%, protected by a Brexit-driven weakening of the pound that bolstered foreign revenues for its big multinational companies.
Some hint of the risks for the fund management community of an end to a decade-long stocks rally, however, showed up in the suspension of high-profile fund manager Neil Woodford suspended dealing in the Woodford Equity Income Fund.
Fund supermarket Hargreaves Lansdown, which includes the Woodford fund in six of its Multi-Manager investment packages, fell more than 5% in response.
"It's been a tough few years for Woodford and things look like they will get worse still," Markets.com analyst Neil Wilson said.
Builder Kier Group, which tanked more than 40% on Monday after a profit warning, fell another 8%.
Another stark reminder of the toll the prolonged and delayed Brexit process is taking on consumers came from the British Retail Consortium, whose data showed shoppers cut back spending in May by the most in more than two decades.
Shares of retailers and consumer goods companies declined in response, with online grocer Ocado down 3.1% and homebuilder Barratt down 2.7% on the FTSE 100.
Fashion retailer Ted Baker slid 3% on the mid-cap index.