FTSE 100 Index Reaches Historic High in 2025, Driven by Banks and Commodities

The FTSE 100 index reached a record high in December 2025, with banks and commodity stocks leading gains. The index climbed 0.8%, supported by a positive performance in precious and industrial metals. Despite low trading volumes, the FTSE 100 has outperformed other major markets, reflecting strong financials and expectations of rate cuts.

On the penultimate trading day of 2025, London's FTSE 100 index soared to a record high, propelled by advancements in banking and commodity stocks. Closing 0.8% higher at 9940.7 points, it marked the index's best performance in nearly seven weeks.

Noteworthy gains were seen with Fresnillo jumping 6.8%, while mining giants like Glencore, Anglo American, and Rio Tinto benefited from rising metal prices, pushing an index of precious metal miners up by 4.3%. Concurrently, oil prices buoyed Shell and BP as both rose about 0.9% each.

The FTSE 100's strong annual performance in 2025 was boosted by expectations of Bank of England rate cuts and robustness in financial and mining sectors. Despite subdued trading volumes due to the holiday season, the index's 21% climb underscores its role as a favorable diversifier amid global market volatility.

(With inputs from agencies.)