A few bright spots have emerged among London's leading shares.
Inevitably they are mainly among defensive stocks as investors look for stability amid the turmoil
So utilities are wanted, with British Gas owner Centrica 5p better at 326.75p, International Power 3p higher at 352.5p and Drax up 5p to 770p.
And with central banks trying once more to free up the virtually frozen money markets by pumping in one week dollar funds, the FTSE 100 is off its worst levels, now down 68.9 points at 5128.2.
But the uncertainty over the Bush administration's $700bn (£380bn) bail-out plan continues.
Martin Slaney, head of derivatives at spread betting group GFT commented: "This financial version of "deal or no deal" is not conducive to restoring badly needed confidence. The on-going discord is massively unsettling and the fact that we now have Washington Mutual added to the list of casualties is escalating the cynicism.
"If anything, reports of an alternative plan [a proposal by the Republicans for a government backed insurance scheme] have added to the uncertainty. Timing is the key issue here; if a deal hasn't been signed and sealed over the weekend, expect massive market turmoil. Monday will be a bloodbath."
