London's blue-chip index finished the penultimate trading day of 2025 firmly in positive territory, lifted by a surge in mining stocks that helped the market capture a dose of festive cheer.
Markets Close Higher Ahead of New Year Break
The FTSE 100 Index advanced by 74.18 points, or 0.8%, to settle at 9,940.71. The mid-cap FTSE 250 also climbed, adding 150.85 points (0.7%) to reach 22,558.36, while the AIM All-Share index rose 1.0% to 766.86.
Trading in London will conclude early on Wednesday ahead of the New Year's Day holiday on Thursday, with a full session scheduled for Friday. European peers also saw gains, with Paris's CAC 40 up 0.7% and Frankfurt's DAX 40, after a shortened day, closing 0.6% higher.
Mining Sector Leads the Charge
The standout performers were in the resources sector. Fresnillo shares soared 6.8% to 3,412 pence, continuing a spectacular year where its value has increased more than fivefold. Citigroup raised its price target for the precious metals miner to 3,900p. Other mining giants followed suit, with Antofagasta rising 3.3%, and Anglo American and Glencore each adding 2.4%.
Danni Hewson, an analyst at AJ Bell, commented on the session's dynamics. "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 – although even it was experiencing that end-of-year phenomenon often referred to as a ‘Santa rally’ today," she said.
Hewson added that investors are seeking value and diversification amid a pressured US dollar, geopolitical turmoil, and concerns over an AI bubble. She noted that indications of further US interest rate cuts could help Wall Street find momentum.
Currency Movements and Global Markets
In currency markets, the pound was quoted at $1.3475 at the London close, slightly down from $1.3491 on Monday. The euro edged higher to $1.1762. The dollar strengthened against the yen, trading at 156.25 yen.
In contrast to London's gains, stocks in New York were softer. The Dow Jones Industrial Average was down 0.2%, while the S&P 500 and Nasdaq Composite each dipped 0.1%. Key US Treasury yields held steady, with the 10-year at 4.12% and the 30-year at 4.80%.
Economic data from the US showed home price growth remained subdued in October, with the S&P CoreLogic Case-Shiller national index posting one of its weakest annual gains since mid-2023. Meanwhile, a survey from the Federal Reserve Bank of Dallas indicated service sector activity in Texas was unchanged in December.
Notable Movers Beyond the FTSE 100
On London's junior AIM market, shares in Caspian Sunrise jumped 13% after the company secured significant tax concessions from the Kazakh government related to its BNG contract area.
Not all news was positive, however. Shares in security firm Westminster Group plunged 21% despite the company revealing it was in advanced talks for a significant investment from a strategic investor in Africa and the Middle East. Stockbroker Jarvis Securities saw its shares fall 20% after reporting a widened loss and noting one unit would need to pay client redress for conduct rule breaches.
In commodities, Brent oil was slightly lower at $61.44 a barrel, while gold held steady at $4,366.20 an ounce.
Key Market Closings and Data Ahead
The biggest FTSE 100 risers were Fresnillo, Antofagasta, Airtel Africa, Glencore, and Anglo American. The main fallers included Metlen Energy & Metals, Experian, and Pershing Square.
Investors will now focus on US initial jobless claims data due on Wednesday, the final trading day of the year. No major corporate events are scheduled for UK companies.
