The relief rally has not lasted long. After opening higher Wall Street is now down around 80 points, and this has sent the FTSE 100 into negative territory, down 18.8 points at 4347.9.
Traders said US financial companies were being hit, and suggested this might be at least partly due to the American ban on short selling being lifted last night. It is also of course the Yom Kippur holiday which mean lower volumes than usual.
David Buik, BGC Partners, commented: "Most mature western indices have fallen by between 30 and 35% since the beginning of the year. Half of that fall is down to fear and uncertainty.
"Volatility will be with us until Christmas and long term investors will need to keep their cool. At the end of the day, the Paulson and Brown plans have to work – such a pity they are a year late and sadly there is no plan B."
Finally, for some much needed light relief, a report from the Daily Mash on how the forthcoming new owner of Britain's banks plans to proceed.
