Just as many investors were beginning to unwind positions in the market's long-term takeover targets, anticipating a run-down in corporate activity as the final quarter of the millennium looms, along came the biggest bid for a UK target the market has had to contend with.

The Bank of Scotland's offer for National Westminster Bank was the second "out-of-the-blue" takeover move this week, following Rolls-Royce's agreed bid for fellow engineer Vickers. The offer provided a much-needed cushion for a London market that was in the process of bracing itself for another big Wall Street-induced slide.

But not even the NatWest bid could prevent another overall downside performance from an increasingly nervous stock market.