London's top flight started Tuesday in see-saw mode after Asia turbulence and downbeat German economic data.
The FTSE 100 Index began the session on the front foot, then dropped 3.4 points to 5685 after Japanese bank stocks took a hit from economic jitters.
Japan's benchmark 10-year bond yield entered negative territory for the first time and the Nikkei dropped nearly 919 points.
Back in Europe, figures showed Germany's industrial production in December falling to lows not seen in four months.
In the UK, like-for-like retail sales were 2.6% higher year-on-year in January, well above the consensus of 0.3%, according to figures from the British Retail Consortium. The year-on-year growth rate was the strongest since September.
Samuel Tombs at Pantheon Macroeconomics said: "Confident consumers are continuing to spend all the windfall from lower oil prices."
In the markets, graphics chip-maker Imagination Technologies (LON:IMG) gained some respite after Monday's fall following news that its chief executive was leaving and it expected annual losses. The shares jumped 9.75p, or 7.5%, to 139p.
Sound Energy (LON:SOU) eased 0.12p to 18.38p as it said it was set to ramp up production from its Nervesa gas field in Italy after completing the initial cleaning phase.
Tungsten Corp (LON:TUNG) shed 2.75p to 63p after the electronic invoicing company said it was trading in line and full-year revenue should broadly match previous guidance.
But Cyan Holdings (LON:CYAN) ticked up 8.77% to 0.155p as it won a first order worth £67,000 for smart meters to be fitted on street traffic cameras in Iran.
African Potash (LON:AFPO) declined 0.15p to 1.45p after it said payment was still pending for a 20,000 metric tonne fertiliser sale to a Zambian client.
MARKET PREVIEW
UK shares are poised for another turbulent day as investor confidence is shot to bits and after sharp losses in US and Europe.
The FTSE100 closed down 2.72% yesterday at 5,689, with banks taking a hit, while the Dow Jones on Wall Street closed 178 points lower. The broader-based S&P500 index lost 27 to 1,855.
The index was called by financial spread-betters at IG to continue the decline and open around 16 points lower.
In Japan, while other Asian markets are closed, including China, shares fell off the cliff - with the Nikkei 225 plummeting 5.41% to 16,085.
The benchmark ten year bond yield in Japan went into negative territory for the first time.
The sinking global markets since the new year has been big news and many are beginning to view it as a loss of faith in the actions of Central Banks to help prop up countries' economies.
Chris Weston, at IG, said: "It almost feels as though the markets are pushing central banks into some kind of action, but they don’t know exactly what it is they want.
"Deeper negative rates could have untold, dire consequences.
"Further balance sheet expansion through QE could only lead to more disappointment and an even deeper credibility issue, not to mention dislocations in markets.
"What we are seeing is a ferocious destruction of wealth and confidence, with some rather powerful bearish trends developing. Traders and investors need to adapt, if they haven’t done so already."
So a stormy day on the cards ahead. On the corporate front, we have a quarterly update from travel group TUI AG (LON:TUI) to look forward to.