FTSE 100 Records Best Year Since 2009, Outperforming US and European Markets in 2025
The FTSE 100 index rose 21.5% in 2025, marking its best year since 2009 and finishing at 9,931 points. The index saw a series of record-breaking days, with the most recent occurring on 30 December. This strong performance was supported by a weak pound, which made sterling-priced shares attractive to international buyers. Key contributors to the rally included mining and oil & gas stocks, with metals such as gold, silver, and copper reaching new highs.
Expectations of Bank of England rate cuts also bolstered investor confidence. Over the year, the FTSE 100 outperformed several European and US peers: the CAC 40 rose more than 10%, the Stoxx 600 gained approximately 16%, the DAX increased by 21.5%, and the S&P 500 grew around 17%.
The FTSE 100 comprises the 100 most valuable London-listed companies, including major names such as Barclays, NatWest, HSBC, Lloyds, Tesco, Marks & Spencer, and Sainsbury's. Investor sentiment shifted towards non-US equities as the US-China trade war escalated from 2 April, a date referred to as Liberation Day in the market context.
