Finance
Blue‑chip FTSE 100 stalls near record high, sealing strongest annual run in 16 years
Published by Global Banking & Finance Review®
Posted on December 31, 2025
2 min readLast updated: January 20, 2026
Home > Finance > Blue‑chip FTSE 100 stalls near record high, sealing strongest annual run in 16 years
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FTSE 100 ends 2025 near record highs, achieving its best annual performance in 16 years, driven by rate cuts and strong mining stocks.
FTSE 100 Nears Record High, Best Annual Gain in 16 Years
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)
Key Takeaways
- •FTSE 100 ends 2025 near record levels.
- •Strongest annual gain since 2009, up over 21%.
- •Boosted by Bank of England rate cuts and mining stocks.
- •FTSE 250 and small cap indices also saw gains.
- •Global markets like STOXX 600 and S&P 500 also rose.
Frequently Asked Questions about Blue‑chip FTSE 100 stalls near record high, sealing strongest annual run in 16 years
1What is the FTSE 100?
The FTSE 100 is a stock market index that represents the 100 largest companies listed on the London Stock Exchange, based on market capitalization.
2What are blue-chip stocks?
Blue-chip stocks are shares in large, well-established, and financially sound companies that have a history of reliable performance and stable earnings.
3What is a market index?
A market index is a measurement of the performance of a specific group of assets, often used to track the overall performance of a stock market or sector.
4What is the Bank of England?
The Bank of England is the central bank of the United Kingdom, responsible for monetary policy, issuing currency, and maintaining financial stability.
5What is a rate cut?
A rate cut refers to a reduction in the interest rate set by a central bank, aimed at stimulating economic activity by making borrowing cheaper.
