AROUND £2.3 trillion was wiped off the value of UK blue chips in June as the FTSE 100 Index endured a month of hefty losses following a painful global stock market sell-off.
The top tier closed in the red again, down 27.9 points at 6215.5, ending a three-day rebound that has seen it rise by more than 200 points since Monday's close.
Despite this week's fightback, the blue chip index has lost 5.6 per cent over June following a plunge on fears of an abrupt end to America's asset buying programme, as well as worries on China's looming credit crunch.
Assurances from US policymakers over their economic stimulus measures had helped settle markets earlier this week.
But investor nerves remained fragile as more mixed US economic data was released, showing a bigger-than-expected fall in manufacturing activity and robust consumer confidence.
Sentiment was also hit as HSBC downgraded its global growth fore-cast due to the recent turmoil in emerging markets.
The Dow Jones Industrial Average on Wall Street edged more than 20 points lower in early trading, while the Dax in Germany fell 0.4 per cent and France's Cac 40 dropped 0.6 per cent.
Rebecca O'Keeffe, head of investment at Interactive Investor, said: "Whilst it may appear as if all the major macro issues have disappeared, there remain concerns about whether there will be another leg down.
"So whilst some investors are certainly viewing this dip as the buying opportunity they've been waiting for, others remain unconvinced and the market is likely to remain fragile in the short term."
The pound fell as the US dollar continued to strengthen, down to $1.52 against the greenback. Sterling was also down at €1.17.
Outsourcing firm Serco was the biggest riser during a quiet session for corporate news, with the FTSE 100 stock adding 3 per cent or 16p to 616.5p.
The improvement came as it said its first-half revenues growth had been ahead of its expectations, driven in part by last year's record level of contract awards, many of which only started part way through last year.
Media and publishing group Pearson was another big gainer, up 17p to 1171p, as it denied a report saying it was in talks to sell the Financial Times newspaper.
But a further plunge in the price of gold sparked falls for some mining stocks.
The precious metal slumped to its lowest level in nearly three years, hit by concerns over the Fed's plans to rein in quantitative easing.
It is now on course for its worst quarter since at least 1968, having fallen below $1,200 an ounce (£787) for the first time since August 2010 yesterday.
Mexican gold and silver miner Fresnillo clawed back hefty early session losses, closing flat at 882p, although fellow mining stocks Eurasian Natural Resources and Antofagasta dropped 7.8p to 204p and 21.5p to 795p respectively.
The biggest FTSE 100 risers were Serco up 16p to 616.5p, Persimmon ahead 23p to 1181p, Hammerson 8.5p higher at 487.3p and Resolution up 4.8p to 285p.
The biggest FTSE 100 fallers were Eurasian Natural Resources down 7.8p to 204p, Barclays 7.8p lower at 278.5p, Antofagasta off 21.5p to 795p and Weir Group down 51p to 2151p.
? NOT AS SHINY: Gold slumped to its lowest level in nearly three years yesterday