The FTSE 100 closed 3.18 per cent lower on Thursday as a Bank of England base rate cut and decision to start quantitative easing failed to boost confidence.

Closing at 3,529.86, the index was trading higher than its recent multi-year lows, but still demonstrated a lack of confidence among investors. The drop also wiped out much of yesterday gains – with rises now seeming like to fall into the felis mortis genus (that’s a nicer way of saying dead cat territory).

Ryan Kneale, market analyst at BetsForTraders.com, said: “Today’s rate cut by the Bank of England has gone down like a lead balloon with the equity markets barely reacting.

“The cuts almost seem pointless at this level, with the beleaguered UK banks unlikely to lower borrowing costs in the near term. Surely the time has come to try something different.”

Insurer Aviva, which revealed a fall in profits earlier today, led the decline with a 34.04 per cent drop in value to 188p.

Legal & General Group followed closely, falling 28.88 per cent to close at just 26.60p.

Barclays also took a hit, with shares tumbling 23.41 per cent to 66.10p.

Property companies fared better, with British Land shares up 4.84 per cent and Hammerson rising 4.66 per cent.

Once again, defensive stocks, including utilities, tobacco and food companies, performed well on the index.

Scottish & Southern Energy shares rose 3.17 per cent, Associated British Foods was up 2.33 per cent and British American Tobacco climbed 1.98 per cent.