FTSE 100 Poised for Best Year Since 2021 Amid Economic Shifts

The FTSE 100 climbed on the last trading day of 2024, marking a potential fourth consecutive year of gains and the best performance since 2021. The index saw challenges in the final quarter, with significant influences including a new Prime Minister, BoE policy changes, and global economic uncertainties.

On the final trading day of 2024, London's FTSE 100 saw an uptick, hinting at a fourth consecutive year of gains and its best performance since 2021.

The FTSE 100 gained 0.3%, though it experienced its only negative quarter in six and its worst month since October 2023. Despite a 0.4% gain, the mid-cap FTSE 250 faced its worst quarter in nine. Trading volumes were expected to be low with early market closures for New Year's Eve.

Major FTSE 350 sectors saw gains, notably precious metal miners recovering from a previous dip. Energy stocks climbed 1.2%, while aerospace and defense declined 0.3%. Influencing factors included Prime Minister Keir Starmer's election win, the Bank of England's monetary easing, and the impacts of domestic and international political developments.

(With inputs from agencies.)