Britain's equity market's response to the move by the US Federal Reserve's open market committee to cut US interest rates by 25 basis points was a clear thumbs-down.
Investors feared that the move would not be enough to prevent more pain across global markets.
There had been strong hopes among traders that a substantial move by the FOMC, perhaps 50 basis points, would demonstrate the Fed's determination to ease the pressure on other markets.
But, during a tense trading session, the emergence of rumours of further problems concerning the big hedge funds, plus talk of downgrades of the big European banks because of the recent turmoil in global markets, led to a general erosion of confidence across markets.
The FTSE 100 index, having spent much of the session threatening to drop back below the 5,000 level, managed to close well off its low, down 44.3 at 5,064.4.
At its worst, the index posted a 104.8 decline at 5,003.9, a level that saw the emergence of some determined support from domestic and overseas institutions.
Dealers said at least two of the big Scottish institutions viewed the 5,000 level on the FTSE 100 as offering good value and that they backed up those views with good support of the frontline stocks. There was also evidence of increased institutional activity in the market from turnover levels. At the 6 p.m. cut-off point turnover in equities was 962.2 million shares.
The overall market malaise included the second and third-tier stocks with the FTSE 250 finishing 17.8 off at 4,544.2 and the FTSE SmallCap taking further punishment, ending 9.3 easier at 1,986.6.
Wall Street had first crack at the rate cut news, the Dow Jones Industrial Average settling 28 points off overnight.
