The FTSE 100 <.FTSE> ended down 1.6 percent at 5,867.18, after a strong rally last week that was the biggest weekly gain for the index this year.

Standard Chartered was among the leading losers after brokers downgraded their price targets on the Asia-exposed bank, which posted its first loss in 26 years on Tuesday.

It slumped 4.4 percent after price target downgrades from Deutsche, Bank of America/Merrill Lynch and Nomura, taking total losses since it reported the results to more than 10 percent.

"The continued weak revenue momentum in 4Q15 was worse than anticipated," Deutsche Bank analysts said in a note.

"Until revenue momentum turns, we think it too early to turn positive on the shares."

Broker price target cuts also hit shares in engineering company GKN, which dropped 2.9 percent, with Credit Suisse citing a more challenging than expected aerospace sector following GKN's disappointing results on Tuesday.

Mining stocks BHP Billiton, Glencore and Anglo American down 8.4-10.1 percent.

Mining <.FTNMX1770> was the biggest sectoral loser, having hit 12-1/2 year lows in January.

BHP slumped after results in the previous session when it slashed its dividend. While some banks raised their price target on the stock, traders said the results had called time on the sector's rally this month.

"Mining stocks ... (are) still suffering in light of BHP Billiton’s hacked dividend on Tuesday," Spreadex analyst, Connor Campbell, said in a note.

Burberry dropped 4.4 percent, taking falls since Tuesday to more than 8 percent, as the luxury sector continued to come under pressure following a poorly received update from sector peer Hugo Boss.

Housebuilders were among the top gainers, after well-received results from Barrat Developments, further boosting sentiment in the sector after Persimmon extended its gains after its own results on Tuesday.

(Editing by Louise Ireland)

By Kit Rees and Alistair Smout