Blue‑chip FTSE 100 stalls near record high, sealing strongest annual run in 16 years (updated)

Antofagasta

31/12/2025 13:03

There will be no London equities report on January 1 on account of the New Year's Day holiday. Coverage will resume on January 2.

FTSE 100 dips 0.2%, FTSE 250 down 0.4%

Market shuts early on New Year's Eve

FTSE 100 set for fifth straight annual gain

Dec 31 (Reuters) - UK's FTSE 100 index paused near record levels in the final stretch of 2025 on Thursday, wrapping up its strongest annual gain in 16 years in a shortened trading session.

The blue-chip FTSE 100 .FTSE ended 0.2% lower after closing at a record level a day earlier. The domestically focused FTSE 250 midcap index .FTMC dipped 0.4%.

Trading activity was muted with markets closing early ahead of the New Year holiday on January 1.

After years of underperformance, Britain's blue‑chip FTSE 100 outpaced major global markets in 2025, lifted by expectations of further Bank of England rate cuts, strength in financials and miners and its appeal as a relatively cheap diversifier during bouts of global volatility.

The index rose more than 21% over the year, heading for a fifth straight annual gain and its strongest performance since 2009. By comparison, the pan‑European STOXX 600 .STOXX gained 16.6% and the U.S. S&P 500 .SPX climbed 17.2%.

Earlier in December, the BoE delivered its fourth 25‑basis‑point cut of the year in a narrow vote, while signalling the already gradual pace of easing may slow further.

The resources‑heavy FTSE 100 drew support from miners Fresnillo FRES.L, Endeavour Mining END.L and Antofagasta ANTO.L, which advanced on the back of surging gold, silver and copper prices this year.

In contrast, Bunzl BNZL.L and Diageo DGE.L tumbled around 37% each, leaving the business supplies distributor and the world’s largest spirits maker among the index’s biggest laggards.

Record highs stayed out of reach elsewhere. The midcap index gained 9% in 2025 but remained nearly 8% below its 2021 peak, while the FTSE small cap .FTSC rose about 10% yet closed 1.5% short of its 2021 high.

FTSE 100 outperforms global peers after years of lagging https://fingfx.thomsonreuters.com/gfx/mkt/jnvwkkldjvw/Pasted%20image%201767183550609.png

(Reporting by Medha Singh in Bengaluru; Editing by Nivedita Bhattacharjee and Hugh Lawson)

((medha.singh@thomsonreuters.com))