The UK’s FTSE 100 index paused near record levels in the final stretch of 2025, wrapping up its strongest annual gain in 16 years in a shortened trading session on Wednesday. The blue-chip gauge ended 0.2% lower after closing at a record level a day earlier. The domestically focused FTSE 250 midcap index dipped 0.4%.
Trading activity was muted with markets closing early ahead of the New Year holiday on January 1. After years of underperformance, Britain’s blue-chip index outpaced major global markets in 2025, lifted by expectations of further Bank of England (BoE) rate cuts, strength in financials and miners, and its appeal as a relatively cheap diversifier during bouts of global volatility. The index rose more than 21% over the year — its strongest performance since 2009.
Earlier in December, the BoE delivered the year’s fourth cut of 25 basis points in a narrow vote, while signalling the already gradual pace of easing may slow further. The resources-heavy FTSE 100 drew support from miners Fresnillo, Endeavour Mining and Antofagasta, which advanced on surging gold, silver and copper prices. In contrast, Bunzl and Diageo tumbled about 37% each, leaving the business supplies distributor and the world’s largest spirits maker among the index’s biggest laggards.
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Record highs remained out of reach elsewhere. The midcap index gained 9% in 2025, but remains almost 8% below its 2021 peak, while the FTSE small cap rose about 10% — still 1.5% short of its 2021 high.
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