The FTSE 100 index in the UK remained stable near record levels, as it approached the conclusion of 2025, aiming to finalize its most significant annual increase in 16 years during a shortened trading session. The blue-chip FTSE 100 was about flat by 0902 after closing at a record level a day earlier. The domestically focused midcap index experienced a decline of 0.3%. Trading activity exhibited a subdued nature as markets are anticipated to conclude operations at 12:30 PM in advance of the New Year holiday on January 1.

Following a prolonged period of underperformance, Britain’s blue-chip index is poised to surpass major global markets in 2025. This anticipated outperformance is bolstered by expectations of additional rate cuts from the Bank of England, robust performance in the financial and mining sectors, and its attractiveness as a relatively inexpensive diversifier amid global volatility.

The index experienced an increase exceeding 21% over the year, positioning itself for a fifth consecutive annual gain and marking its most robust performance since 2009. By comparison, the pan-European STOXX 600 gained 16.6% and the U.S. S&P 500 climbed 17.2%. In early December, the BoE executed its fourth 25-basis-point reduction of the year, following a closely contested vote, while indicating that the already measured pace of monetary easing may decelerate further.

The resources-heavy FTSE 100 received support from miners Fresnillo, Endeavour Mining, and Antofagasta, which advanced due to the significant increases in 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.