On Wall Street, markets fell back slightly on the anniversary of Lehman Brothers' collapse.
Wall Street shares dipped on opening as a trade spat between the US and China escalated.
The FTSE 100 has dropped back below the 5,000 mark as miners suffer from profit taking on fears the rally in metal prices may have gone too far.
The Dow has slumped in early trading, despite optimistic figures showing more Americans are finding work.
London trading got off to a positive start after the FTSE 100 rose above the psychologically important 5,000 points barrier yesterday.
The Dow Jones pushed ahead in early trade after its Labor Day recess, as the market reacted to Kraft's attempt to buy Cadbury.
The FTSE 100 has extended its gains this afternoon as Cadbury snubs Kraft's £10.2bn takeover approach.
The FTSE 100 is being spurred forwards by Cadbury this morning on news the British chocolate maker has received a £10.2bn takeover approach from US goods giant Kraft.
US blue chips barely moved off the starting blocks in opening exchanges despite Government data showing US unemployment in August reached its highest level since 1983.
A revival in appetite for UK mining firms, spurred by a rebound in metal prices, helped to push up the UK's benchmark index in early exchanges.