FTSE 100's Resilient Surge: A Record-Breaking Year Unveiled

The UK's FTSE 100 index achieved record-breaking growth in 2025, marking its strongest annual gain in 16 years. Despite a slight dip due to muted trading ahead of New Year, the index outpaced global markets, supported by rate-cut expectations and strong mining sectors, while midcap and small cap indices lagged.

The UK's FTSE 100 index found itself near record levels, concluding a standout year on Thursday during a shortened trading session. Despite closing 0.2% lower a day after reaching new heights, the index recorded its most substantial annual gain in 16 years.

In a year defined by volatility, the FTSE 100 beat major global markets, bolstered by anticipated rate cuts from the Bank of England and strong performances from financial and mining sectors. Rising an impressive 21% over the year, it marked the index's strongest performance since 2009, eclipsing gains seen in the STOXX 600 and S&P 500.

Earlier this month, the Bank of England executed another rate cut while signaling potential future slowdowns. The indices heavyweights, including Fresnillo and Antofagasta, benefited from surging commodity prices, while others like Bunzl and Diageo faltered, mirroring mixed performances across other indices like the FTSE 250 and small cap.

(With inputs from agencies.)