FRESH fears of a global recession pushed London’s leading shares index down more than 1% yesterday, capping off its worst quarter of trading for nine years.

The FTSE 100 Index fell 68.4 points to 5128.5 after worrying Chinese and US economic data added to fears about a Greek default.

The fall means London’s blue chip shares have fallen 13.7% in the third quarter of 2011 – its worst performance since 2002 when the dot-com boom ended.

The UK’s biggest companies have had some £212bn wiped off their value in the past three months.

World markets have been hugely volatile recently as investors panicked that the US and eurozone would be unable to keep up with payments on their huge debts and would lead the world back into recession.

The falls came after a monthly survey by banking giant HSBC showed that China’s manufacturing remained stagnant in September due to sluggish demand both at home and abroad.

The FTSE 100 Index, which is on course to close its worst three months in nearly nine years, was down more than 2%, while Germany’s Dax lost more than 3% and the Cac-40 in France shed more than 2%.

A monthly survey by banking giant HSBC showed China’s manufacturing remained stagnant in September due to sluggish demand both at home and abroad – fuelling concerns of a global slowdown.

Elsewhere, Greek Prime Minister George Papandreou pressed European leaders, including French President Nicolas Sarkozy, to release the next £7bn bailout instalment for his country.

The uncertainty heightened when striking civil servants forced debt inspectors in Athens to postpone talks to decide whether Greece is making enough progress with its austerity measures.