The FTSE 100 is set to close out 2025 just below the 10,000 level. The index starts the New Year’s Eve session up 8 points, bringing the new high for the year to 9,948, adding around 22% year-to-date, a significant improvement from 2024’s 5%.
Low holiday volumes and limited corporate news kept trading subdued.
Market Snapshot: Winners and Laggards in Focus
In early trade ,added 0.67% to £99.20, BAE Systems gained 0.58% to £1,724, while Diageo climbed 0.53% to £1,611.
Pharmaceutical heavyweight AstraZeneca rose 0.52% to £13,822, British American Tobacco jumped 0.43% to £4,213, and Shell added 0.38% to £2,742.
In contrast, mining and cyclical stocks faced pressure during the session amid gold and silver corrections, with Fresnillo falling 2.58% to £3,324, dipping 1.69% to £3,836, and Rio Tinto falling 0.78% to £5,979.
Antofagasta fell 0.91% to £3,286, and Ashtead Group declined 0.51% to £5,116, highlighting profit-taking after strong runs.
Precious Metal Miners Drive Annual Outperformance
Despite short-term volatility, precious metal miners were the most prominent performers in the year 2025. The price of gold and silver saw a historic rally, benefiting Fresnillo, which captured a nearly 450% rise over the year.
The price of went up almost 65% in 2025, reaching over $4,549 per ounce, its best performance since 1979.
Names like Pan African Resources, which are associated with mining, also experienced huge price increases, the latter notably due to the duo of falling US interest rates and demand for safe-haven investments.
Defence and Banking Stocks Shine
The aerospace and defense sector showed outstanding performance. Babcock International’s stock rose by approximately 148%, BAE Systems by around 50%, and Rolls-Royce’s stock price approximately doubled; all three companies benefited from rising global defense budgets and political tensions.
In addition, UK banking stocks rebounded significantly. The stock of Lloyds Banking Group grew by about 80%, Barclays’ by 78%, and NatWest’s by 62%.
Lenders with an international focus also had a good run, as rose by 85% and HSBC increased by approximately 50%, as higher interest rates earlier in the cycle bolstered margins.
Consumer and Media Stocks Struggle
Consumer-facing names delivered mixed results, with Diageo falling about 37% in 2025, pressured by weaker demand in the US and China.
The advertising major WPP plunged roughly 59%, losing its FTSE 100 status amid concerns over AI disruption and slowing client spend. Greggs declined around 39%, marking one of its weakest years on record.
Global Market Overview
On Wednesday morning, the pound was quoted at $1.3455, compared to the previous day’s London stock market close of $1.3475.
In Asia, the Shanghai index gained 0.2% while the Hang Seng dropped 0.9%. The latter has witnessed a remarkable 28% increase this year. The S&P/ASX 200 in Sydney finished slightly lower on Wednesday; however, the index is up 6.8% year-to-date.
In the US, on Tuesday, the Dow Jones lost 0.2%, the S&P 500 was down 0.1%, and the Nasdaq was off by 0.2%.