Introduction: FTSE 100 heads for best year since 2009
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
The London stock market is ending its strongest year since the aftermath of the financial crisis at record levels.
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.
This year’s rally has been driven by mining stocks, precious metals producers, defence companies and banks – in a year in which the gold price has surged, and the dollar has weakened.
And for once, London has outperformed Wall Street – where the S&P 500 index has gained 17%.
Danni Hewson, head of financial analysis at AJ Bell, says:
“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.”
The agenda
Key events
The London stock market has opened a little higher, on the final trading day of the year.
The FTSE 100 index has gained 9 points, or almost 0.1%, to 9,949 points, towards the intraday record high set yesterday.
Mobile phone operator Vodafone (+0.8%) is the top riser, followed by pharmaceuticals giant AstraZeneca (+0.6%).
Drinks company Diageo (+0.5%) is close behind; it’s lost a third of its value this year, after suffering weak sales and a supply problem in Latin America.
Oil is on track for a chunky fall in annual prices.
Brent crude futures are down nearly 18% in 2025, the biggest annual drop since 2020 when demand slumped during the Covid-19 pandemic.
That puts oil on track for a third straight year of losses, their longest-ever losing streak according to Reuters.
Supply of oil has outpaced demand in a year marked by wars, higher tariffs and OPEC+ output and sanctions on Russia, Iran and Venezuela.
Eurostar says train services resume, but warns of delays and cancellations
Eurostar has warned passengers could face delays and last-minute cancellations today, as services resume after a power supply failure caused widespread disruption on Tuesday.
Eurostar plans to run a full service today, and says:
“Services have resumed today following a power issue in the Channel tunnel yesterday and some further issues with rail infrastructure overnight.”
“We plan to run all of our services today, however due to knock-on impacts there may still be some delays and possible last-minute cancellations.”
Currently the 6.31am from St Pancras which was scheduled to arrive in Paris at 9.49am is expected to roll into the French capital at 10.24am.
The 8.42am from Paris Gare du Nord, which was due to arrive in London at 10am, is running around 30 minutes late too. The earlier 7.42am is 40 minutes late.
Introduction: FTSE 100 heads for best year since 2009
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
The London stock market is ending its strongest year since the aftermath of the financial crisis at record levels.
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.
This year’s rally has been driven by mining stocks, precious metals producers, defence companies and banks – in a year in which the gold price has surged, and the dollar has weakened.
And for once, London has outperformed Wall Street – where the S&P 500 index has gained 17%.
Danni Hewson, head of financial analysis at AJ Bell, says:
“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.”
