FTSE 100 Records Best Annual Rise Since 2009, Buoyed by Strong Global Market Performance in 2025
The FTSE 100 closed 2025 with a remarkable gain of 21.5% from January 1, marking its biggest annual increase since 2009. The broader UK all-share index also experienced a significant rise, up 19.75% over the year. Despite reaching an intraday high of 9,954, the FTSE 100 did not surpass the 10,000 mark.
Leading the growth among FTSE 100 constituents were Fresnillo with a 450% increase, Airtel Africa up 210%, Endeavour Mining rising 170%, Rolls-Royce doubling its value, and Babcock International gaining approximately 150%. Conversely, Bunzl and Diageo were the biggest losers, each falling about one-third.
Globally, equities enjoyed their strongest year since 2019, with overall rises near 21%. The US benchmarks reflected this trend, with the S&P 500 gaining around 17% and the Nasdaq rising about 21%. Major US tech companies showed varied performance: Alphabet surged 65%, Meta increased by 13%, and Amazon climbed 6%.
Gold prices surged notably, ending 2025 about 65% higher, as investors weighed inflation and expectations for interest rate changes. The US dollar declined approximately 9% amid these inflation and rate outlook concerns.
The year included challenges such as a significant tech-sector slump in January following the release of the DeepSeek AI chatbot, which erased about $1 trillion from US tech stock valuations. Additionally, in April, former President Trump announced tariffs that were later paused.
In Europe, the Stoxx 600 index gained about 17% during 2025. Supportive factors included Germany’s fiscal stimulus and increased defense spending. UBS upgraded European equities to an attractive status amid expectations of US interest rate cuts in 2026 and potential Federal Reserve leadership changes aimed at lowering borrowing costs.
