FTSE100 closed over 36 points lower at 6,753 contining the decline, with media group Pearson (LON:PSON) the biggest laggard.
Investors are put off risk due to a number of macro issues, including Greece.
Its shares fell 2.38%. Another faller was banking titan HSBC, which shed 0.94% to 613.7p after it announced the expected round of job cuts and branch closures.
Its part of a $5bn-a-year cost-cutting drive that could hit up to 50,000 jobs worldwide.
HSBC, which has 266,000 staff globally, is set to slash up to 25,000 roles by streamlining IT and back office operations and closing branches.
Chris Beauchamp, at IG Index, put it thus: "Each passing day sees equity markets suffer further losses, as investors struggle to find reasons to remain within the asset class.
"It looks as if the rout in developed equities is spreading to emerging markets, with concerns about slowing growth combining with a rising dollar.."
In Greek affairs, the country’s government submitted new reforms to its creditors today, showing the parties are still some way off reaching an agreement.
Back in the UK, mining stocks were also struggling on more weak data from China. CPI slipped 0.2% in May from the previous month. Inflation is now 1.2% annualy.
Anglo American (LON:AAL) shares fell 2% not helped by a downgrade from Societe Generale.
Similarly, fellow miner Rio Tinto (LON:RIO) was lower after the broker dropped its rating to ‘hold’ from ‘buy’. Shares lost 1.33%.
At the other end of the FTSE 100, Reed Elsevier (LON:REL) gained 1.41% after an upgrade from Barclays.
The bank now sees the stock as ‘overweight’ rather than ‘equal weight’ and shares in the information solutions company rose 2.3% to 1,087p.
In small caps, 3Legs Resources raised £500,000 through a share subscription at 0.27p a share. The company also revealed non-executive director (NED) Richard Armstrong will take over the chairman role, while noted investor Jim Mellon has joined the board as a NED. Shares climbed 21.57% to 0.31p.
Meanwhile, significant tungsten mineralisation was found over a 410m strike at Metal Tiger's joint venture (JV) gold and tungsten project at Logrosán, Spain, it said this afternoon, sending shares 14% higher.
The mineralisation is currently open at both ends.
Meanwhile, DDD Group (LON:DDD) said that trading in the first quarter of 2015 was in line with the board's expectations. Shares rocketed 28.57% to 2.25p.