London blue‑chip FTSE 100 on track to cap strongest year in 16

Dec 31 (Reuters) - UK's FTSE 100 index paused near record levels in the final stretch of 2025 on Thursday, looking to wrap up its strongest annual gain in 16 years in a shortened trading session.

The blue-chip FTSE 100 .FTSE was about flat by 0902 GMT after closing at a record level a day earlier. The domestically focussed midcap index .FTMC dipped 0.3%.

Trading activity was muted with markets expected to close at half past noon ahead of the New Year holiday on January 1.

After years of underperformance, Britain’s blue‑chip FTSE 100 is set to outpace major global markets in 2025, lifted by expectations of further Bank of England rate cuts, strength in financials and miners and its appeal as a relatively cheap diversifier during bouts of global volatility.

The index rose more than 21% over the year, heading for a fifth straight annual gain and its strongest performance since 2009. By comparison, the pan‑European STOXX 600 .STOXX gained 16.6% and the U.S. S&P 500 .SPX climbed 17.2%.

Earlier in December, the BoE delivered its fourth 25‑basis‑point cut of the year in a narrow vote, while signalling the already gradual pace of easing may slow further.

The resources‑heavy FTSE 100 drew support from miners Fresnillo FRES.L, Endeavour Mining END.L and Antofagasta ANTO.L, which advanced on the back of surging gold, silver and copper prices this year. In contrast, Bunzl BNZL.L and Diageo DGE.L tumbled around 37% each, leaving the business supplies distributor and the world’s largest spirits maker among the index’s biggest laggards.