FTSE 100 holds firm on jagged day

The FTSE 100 closed down 0.15 per cent today after a day dominated by interest rate cuts.

Over the morning the index performed well, but after the Bank of England and European Central Bank cut interest rates for the UK and the eurozone, share prices took a dive.

However, late afternoon saw losses regained as the index closed roughly where it started.

At the end of trading the FTSE 100 was at 4,163.61 – a drop of 6.35 points.

Over in New York, the morning's trading on Wall Street was flat.

At 11:53 EST (16:53 GMT), the Dow Jones Industrial Average was down 0.71 per cent to 8,530.52.

The watchword in Europe was also 'pancake' – with the Cac 40 down 0.17 per cent and the Dax down 0.07 per cent.

David Jones, chief market strategist at IG Index, said: "The move by the Bank of England and the volatile reaction by investors is a fair representation of the uncertainty that still dogs markets.

"On the one hand low rates are perceived as a good thing; but the fact that central banks have decided to cut so severely in recent weeks is a demonstration of the severity of the situation – and betrays concerns that it is going to get worse."

Biggest gains of the day went to precious metal specialist Fresnillo – rising 7.19 per cent, followed by fellow miner Eurasian, up 6.80 per cent.

Legal & General and Friends Provident were up 6.40 per cent and 6.32 per cent, while hedge fund Man Group gained 5.57 per cent.

On the downside, 3i Group dropped 8.88 per cent, while miner Xstrata fell 8.83 per cent.

Hammerson fell 7.88 per cent and Stage Coach dropped 6.84 per cent.