Subscribe to our newsletter
Copyright © 2025 lpcentre.com All Rights Reserved. London Premier Centre For Training Ltd Registered in England and Wales, Company Number: 13694538
version: 3.0.1
Subscribe to our newsletter
1/2/2026, 2:52:26 PM
In 2025, the British stock market increased by 20%, its highest yearly gain since 2009. The FTSE 100 index of blue-chip stocks closed up 21.5% on New Year's Eve compared to the start of January, outperforming Wall Street, while the all-share market increased 19.75%.
Fresnillo, a precious metal manufacturer, saw its shares grow 450% by 2025, owing to record gold and silver prices. Endeavour Mining, a competitor, increased by 170%, while Airtel Africa, a telecommunications business, expanded by 210%.
In the midst of the Russia-Ukraine conflict and pressure from Donald Trump on NATO partners to increase defence spending, Europe increased its spending on weapons, which caused defence firm stocks to soar.
Babcock International, a defence contractor for the Royal Navy's nuclear submarines, increased its worth by about 150% in 2025, while Rolls-Royce, which supplies engines and propulsion systems for military planes and vessels, doubled its value.
On Tuesday, the FTSE 100 reached an intraday record high of 9,954 points but did not surpass the 10,000-point mark. Over one-fifth of the FTSE 100's equities declined, with significant losses seen in Bunzl and Diageo, which each dropped by a third of their value.
Remarkably, world stocks increased by 21%, marking their strongest performance since 2019 and the sixth rise in seven years, despite a turbulent year that included a $1 trillion loss in US technology stocks due to the launch of China's DeepSeek chatbot in January.
The announcement of sweeping tariffs by Trump on 2 April led to a 10% decline in the FTSE 100 by mid-April, although a recovery occurred when the tariffs were paused.
As the year came to a close, shares increased due to expectations of US interest rate cuts in 2026 and Trump's announcement that he would name a new Federal Reserve chief who would reduce borrowing costs.
According to Danni Hewson from AJ Bell, investors are seeking value and diversification outside traditional options due to the weakening US dollar and ongoing geopolitical instability, alongside concerns regarding an AI market bubble.
Wall Street's S&P 500 was on pace to register a 17% in 2025, with the Nasdaq up about 21%. Notably, Alphabet, Google's parent company, has seen a 65% increase in 2025, driven by the success of its Gemini artificial intelligence product.
Besides, Meta, owner of Facebook, experienced a 13% increase, whereas Amazon, the online retailer, had a 6% gain.
In 2025, anxiety about the US economy and three interest rate cuts led to a 9% decline in the US dollar, its worst performance since 2017, with analysts predicting more losses in 2026. This situation prompted a significant rally in precious metals, particularly gold, which rose by 65%, marking its best performance since 1979, as investors sought refuge from inflation and geopolitical uncertainties.
Further, the pan-European Stoxx 600 index achieved its best performance since 2021, rising nearly 17%, bolstered by Germany's increased government spending and positive economic data.
In closing, according to UBS's Anthi Tsouvali, 2025 has been significant for Europe, marked by initial growth stemming from German fiscal stimulus and increased defence spending. Despite challenges like US tariffs and poor data, market sentiment is improving, leading to an upgraded outlook for European equities to 'attractive.'
