Britain’s FTSE 100 index remained flat on Friday as gains in energy stocks were counterbalanced by losses in mining companies. By 0938 GMT, the blue-chip FTSE 100 was marginally up by 0.05%, while the midcap FTSE 250 declined by 0.25%. Despite fluctuations, both indexes were poised to end the holiday-shortened week with gains.
The energy sector climbed 0.5%, buoyed by rising oil prices amid hopes of an economic recovery in China, the world’s largest oil importer. Conversely, the mining sector faced headwinds, with Anglo American dropping 1.2%, pulling the metals and mining index down by 0.4%. A strong dollar contributed to the pressure on metal prices.
The construction and materials sector also saw losses, sliding 0.8%.
Despite challenges in 2024, including a domestic economic slowdown, the FTSE indexes demonstrated resilience, remaining on track for annual gains. However, uncertainty loomed due to Finance Minister Rachel Reeves’ October budget announcement, which introduced £25 billion in tax hikes for employers.
Looking ahead to 2025, global economic and political developments are expected to shape investor sentiment. Speculation surrounds U.S. President-elect Donald Trump’s potential tariff policies, which could impact the UK. Additionally, market participants are closely watching the Bank of England’s monetary policy, with traders estimating 51 basis points of interest rate cuts by the end of 2025, in line with the central bank’s cautious easing approach.
FTSE 100 Holds Steady Amid Sector Shifts as Investors Eye 2025 Uncertainties
