FTSE 100 Achieves Best Year Since 2009, Outperforming US and European Markets in 2025
The FTSE 100 closed 2025 with a remarkable 21.5% gain from the start of the year, marking its best annual performance since 2009. The index ended the year at 9,931, having recorded 41 all-time high closes during the year, with the last peak occurring on 30 December 2025.
The strong performance was driven largely by its heavy weighting in mining and international oil and gas stocks. Mining firms benefited from record highs in gold, silver, and copper prices. Additionally, a weaker pound at times improved the attractiveness of sterling-denominated shares to foreign investors.
The rally was further supported by market expectations of Bank of England interest rate cuts. Investors also sought non-US exposure amid the escalating US-China trade war that started in earnest on 2 April 2025.
In relative terms, the FTSE 100 outperformed major global peers, with the S&P 500 rising about 17%, Germany's DAX up 21.5%, the French CAC 40 increasing over 10%, and the Stoxx 600 gaining approximately 16%.
Key constituents of the FTSE 100 include Barclays, NatWest, HSBC, Lloyds, Tesco, Marks & Spencer, and Sainsbury's.
