The UK's benchmark FTSE 100 showed minimal movement on Friday as losses in mining stocks offset gains in the energy sector. Both the FTSE 100 and FTSE 250 indexes were on track for
weekly gains despite the shortened trading week due to the holiday break.
As of 09:38 GMT, the blue-chip FTSE 100 was up a modest 0.05%, while the mid-cap FTSE 250 dipped 0.25%.
Energy stocks climbed by 0.5%, supported by a rise in oil prices amid optimism that economic stimulus efforts could boost demand in China, the world's largest oil importer.
However, mining giant Anglo American fell 1.2%, pulling the metals and mining index down by 0.4%, as a stronger US dollar put pressure on metal prices. The construction and materials sector also struggled, leading losses with a decline of 0.8%.
Despite challenges throughout the year, including a slowdown in the domestic economy, both the FTSE 100 and FTSE 250 remained resilient and were poised to close the year with overall gains.
Adding to the business climate's uncertainty, Finance Minister Rachel Reeves announced a budget in October that introduced £25 billion ($31 billion) in tax increases for employers.
Looking ahead, 2025 presents new uncertainties. Investors are closely watching how Donald Trump, returning to the White House as U.S. president, will approach trade policy, particularly regarding potential tariff extensions to the UK.
Additionally, attention is on the Bank of England's approach to interest rate cuts. The central bank has signaled a gradual pace of policy easing, with traders estimating a total of 51 basis points in rate cuts by the end of 2025. Photo by Kaihsu Tai, Wikimedia commons.
