The UK’s flagship inventory index has had its finest 12 months since 2009 after a collection of record-breaking days.
The Monetary Instances Inventory Change (FTSE) 100 ended the 12 months up 21.5% in comparison with the beginning.
It means the share worth of the publicly traded corporations making up the FTSE 100 had the best annual improve in 16 years.
The FTSE 100 includes the hundred Most worthy corporations listed on the London Inventory Change.
Notable constituents embody lenders comparable to Barclays, Natwest, HSBC and Lloyds and grocery store chains Tesco, Marks & Spencer and Sainsbury’s.
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The index can also be largely made up of mining and worldwide oil and gasoline corporations.
There was a collection of record-breaking moments for the UK’s benchmark index throughout the 12 months, the latest of which was on 30 December.
There have been 41 all-time excessive closes for the FTSE 100 in 2025, based on knowledge from the London Inventory Change Group (LSEG).
Why?
It has been boosted by a weak pound at factors over the 12 months, which made it good worth to purchase shares priced in sterling, as FTSE 100 corporations are typically.
Most of the mining giants have accomplished effectively as minerals like gold, silver and copper reached new highs. Traders moved cash into the metals as they had been perceived as secure investments whereas markets had been unstable.
The promise of rate of interest cuts by the Financial institution of England additionally helped raise the FTSE 100.
It had additionally benefited from buyers trying to corporations exterior of the US after President Trump’s commerce warfare towards China, and far of the world, started in earnest on 2 April on his so-called Liberation Day.
Many commerce offers have since been agreed.
How does it evaluate?
The UK’s top-flight index additionally outperformed European and US rivals.
France’s CAC 40 index gained greater than 10% in 2025, whereas the pan-European Stoxx 600 elevated practically 16%.
Germany’s DAX additionally rose 21.5%.
After a 12 months that noticed tech firm valuations soar, as buyers sought to learn from an anticipated synthetic intelligence (AI) growth, Wall Avenue’s S&P 500 rose 17%.
The S&P 500 is the US index containing corporations relied on to be steady and worthwhile, and incorporates the Magnificent 7 highest-performing tech corporations.
Among the many Magnificent 7 is probably the most useful firm on this planet, AI-chipmaker Nvidia, in addition to Tesla, Amazon, Apple, Meta, Microsoft, and Google’s mother or father firm, Alphabet.
Regardless of hovering close to the symbolic 10,000 mark, the FTSE 100 failed to satisfy the milestone and closed the 12 months at 9,931.
