"2025 has been a very strong year for the FTSE 100 the blue-chip index of UK stocks has climbed by over 21% since the start of January, which would be its best year since 2009. Last night, the index ended the day at a new closing high of 9,940 points, after touching a new peak of 9,954 points, as a burst of Santa rally' excitement rippled through the City."
"The global nature of the inhabitants of London's top-flight index has helped it avoid the doldrums which have held back the more domestically focused FTSE 250 Investors have been looking beyond the usual suspects for value and diversification as the US dollar came under pressure and the world continued to be beset with geopolitical turmoil and fears of an AI bubble."
"An indication that further interest rate cuts are on the cards in the US could enable Wall Street to find a higher gear and minutes from the Fed's last meeting of the year should also shed some light on that. But after that Liberation Day dip which now feels so long ago, European markets have delivered a strong annual performance and today's surge should help maintain that momentum into the new year."
London’s FTSE 100 climbed over 21% in 2025 and closed at record highs. The rally was led by mining stocks, precious metals producers, defence companies and banks amid a surging gold price and a weakening US dollar. London outperformed the S&P 500, which gained 17%. The global composition of the FTSE 100 insulated it from weakness in more domestically focused indices such as the FTSE 250. Investors sought value and diversification against geopolitical turmoil and concerns about an AI bubble. Signs of possible US interest-rate cuts and forthcoming Fed minutes could influence markets. Brent crude futures fell nearly 18%, the largest annual drop since 2020.
Read at www.theguardian.com
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