World markets slipped on Thursday as worries over the global recovery dragged market spirits especially commodity and bank-related stocks.

In London, the FTSE 100 shed off 78.29 points, or 1.5 percent at 5,100.23 points, its lowest closing level in almost a month. Global economic concerns also weighed down in Asia: Japan's Nikkei 225 ended the session flat, while the Shanghai Composite and Hong Kong's Hang Seng shed 0.1 percent and 0.6 percent, respectively. European indices sported broader losses. Paris' CAC, and Frankfurt's DAX declined 2.4 percent, and 1.4 percent, respectively.

Early gains by mining stocks did not hold and ended accounting for the biggest falls upon closing on Thursday. Energy stocks were second runners.

Demand outlook skidded as a statement from the U.S. Federal Reserve created negative sentiment because it showed its assessment that the economic recovery is still quite fragile as areas of weakness, notwithstanding the sovereign debt woes of Europe.

The world's eighth-largest copper miner Kazakhmys (KAZ.L) posted a 5.1-percent decline, oil explorer Tullow Oil (TLW.L) a 4.1 percent.

The Fed's statement put off the early morning rally for the mining sector with the resignation of Australian Prime Minister Kevin Rudd and the appointment of Deputy Julia Gillard. Gillard offered to open further negotiation to the Australian mining sector and improve the controversial "super profits" mining tax.

Euro zone finances also took a beating, with the cost of five-year credit default swaps (CDS), which is an insurance-like instrument to prevent debt default, to hit 9.58 percent in New York on Wednesday, the CDS monitor indicated.