Finance
FTSE 100 kicks off new year trade on positive note
Published by Global Banking & Finance Review®
Posted on January 2, 2025
2 min readLast updated: January 27, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 2, 2025
2 min readLast updated: January 27, 2026
FTSE 100 rose 1.1% on the first 2024 trading day, driven by commodity stocks and expectations of BoE rate cuts.
(Reuters) -The UK's FTSE 100 advanced higher on Thursday, the first trading session of the year, boosted by gains in commodity-linked stocks.
The blue-chip FTSE 100 rose 1.1% to an over two-week high, logging its best day since Nov. 22. The mid-cap FTSE 250 was near flat after touching a two-week high earlier in the session.
Precious metals miners rose 4.6%, leading gains among sectors, as gold hit a two-week high on safe-haven demand and lower U.S. Treasury yields, with investor focus on the U.S. interest rate outlook and policies under the new incoming Donald Trump administration. [GOL/]
Energy stocks <.FTNMX601010> gained 2.2%, and were the biggest boosts. Oil heavyweights such as BP and Shell rose 2.6% and 2.1% respectively, as crude prices were buoyed by expectations of more stimulus for China's slowing economy. [O/R]
On the flip side, homebuilders led sectoral losses with a 0.9% fall.
Data-wise, a survey showed British factory activity shrank at the fastest pace in 11 months in December, as manufacturers cut staffing levels in response to higher taxes and weak foreign demand.
The FTSE 100 recorded an over 5% rise in 2024, its fourth consecutive year of gains, as the UK economy held up better than expected and the Bank of England kicked off its monetary policy easing cycle.
The BoE has, however, said it will move gradually with further cuts to borrowing costs as it monitors whether the tax hikes announced in Finance Minister Rachel Reeves' October budget add to inflation pressures.
Traders are pricing in more than 59 basis points in rate cuts after two cuts in 2024.
(Reporting by Sruthi Shankar and Sukriti Gupta in Bengaluru; Editing by Vijay Kishore; Editing by Aurora Ellis)
The main topic is the FTSE 100's positive performance on the first trading day of 2024, driven by gains in commodity stocks.
Energy stocks gained 2.2%, with BP and Shell seeing significant rises due to crude price expectations.
The Bank of England is expected to continue rate cuts in 2024, with traders pricing in more than 59 basis points in cuts.
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