Published by Global Banking and Finance Review
Posted on December 31, 2025
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 ended 0.2% lower after closing at a record level a day earlier. The domestically focused FTSE 250 midcap index 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 gained 16.6% and the U.S. S&P 500 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, Endeavour Mining and Antofagasta, which advanced on the back of surging gold, silver and copper prices this year.
In contrast, Bunzl and Diageo 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 rose about 10% yet closed 1.5% short of its 2021 high.
(Reporting by Medha Singh in Bengaluru; Editing by Nivedita Bhattacharjee and Hugh Lawson)
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