The FTSE has seen its finest 12 months since 2021, climbing nearly 6 per cent by way of 2024.
The UK’s blue-chip index was boosted by a buoyant international inventory market that meant pension funds invested internationally soared.
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Japan’s Nikkei and Germany’s Dax market each climbed by 19 per cent whereas the US Dow Jones index went up by 13 per cent.
Matt Britzman, senior fairness analyst at Hargreaves Lansdown, stated: “The FTSE 100 wrapped up 2024 on a excessive word.”
The index hit an all-time excessive of 8,474 in Could then after a couple of faltering months it ended the 12 months up 5.8 per cent at 8,173.02.
Mr Britzman stated: “It was a 12 months of resilience fairly than runaway success for the UK’s blue-chip benchmark.”
Buyers confronted a 12 months of twists and turns.
Two rate of interest cuts provided some reduction whereas a tax-hiking funds from Chancellor Rachel Reeves within the autumn put strain on lots of Britain’s home corporations.
Regardless of that the FTSE 100 had its finest 12 months since 2021, when it climbed 14.3 per cent after the perils of the pandemic. In 2022 it climbed simply 0.9 per cent whereas in 2023 it rose 3.8 per cent.
Tom Stevenson, funding director at Constancy Worldwide, stated: “After the turbulence of 2023, we’ve seen a marked shift in the direction of progress, pushed by stabilising inflation and a extra optimistic outlook for rates of interest.”
Dan Coatsworth, funding analyst at AJ Bell, stated: “Whereas it might lack the glitz and glamour of the US market, it’s nonetheless filled with fascinating corporations providing regular earnings progress. The FTSE 100 supplies ballast to an ISA or pension.”
Natwest finest as banks soar
Finance shares had been the largest share winners in 2024, with huge banks Natwest and Barclays main the cost.
Natwest ended the 12 months up 95 per cent, as Barclays rose 81 per cent.
Funding skilled Dan Coatsworth stated: “For a sector typically mired in mis-selling scandals and ever-increasing regulation, Natwest has proven that banks are nonetheless able to doing nicely.”
Analyst Matt Britzman added: “As we strategy 2025, banks look anchored on stable floor.”
Air journey shares additionally flew excessive — with engine maker Rolls Royce rising by 91 per cent.
Bucks Wizz
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Funds euro airline Wizz Air stated it should return to progress in 2026 after unveiling a compensation settlement over grounded plane.
Round 40 Airbus A320neo planes have been left in hangars whereas engines are inspected. Wizz Air stated it has taken “proactive motion to mitigate the monetary and operational affect.”
It ordered 50 new Airbus A321neo plane in 2025-26, to broaden its flight programme by round a fifth. Final month it reported that half-year working income had slumped by a 3rd to £289.7 million.
It has secured operational help and a compensation bundle with US engine-maker Pratt & Whitney to the tip of 2026.
London merger revival
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Final 12 months noticed a increase in huge offers — with the variety of Metropolis mergers and acquisitions greater than double that of 2023.
The UK was the third hottest place to purchase corporations — behind the US and China — with £148.8 billion price of offers, London Inventory Trade Group knowledge confirmed.
UK monetary corporations had been hottest. Nationwide Constructing Society took over Virgin Cash for £2.9 billion.
And Hargreaves Lansdown’s £5.4 billion takeover by non-public fairness group Harp Bidco is anticipated to finish in early 2025.
Fifty-one per cent of UK companies focused concerned an abroad purchaser. Eight mega offers, every price £4 billion or extra, involving a UK goal had been introduced throughout 2024 — the very best whole since 2021.
The most important was the £12 billion bid for London-based college operator Nord Anglia Training by a US non-public fairness consortium.
Micro biz develop bid
British microbusinesses are hopeful concerning the future, regardless of the difficult financial circumstances.
Small companies make up 93 per cent of UK corporations and make use of 8.6 million individuals.
A brand new survey revealed seven out of 10 of them are optimistic about rising their firm over the subsequent two years.
However plans are subdued, with simply over 1 / 4 planning solely native or regional growth, in response to Zempler Financial institution, previously Cashplus.
It’s time to purchase
The approaching 12 months seems set to be a “purchaser’s market,” in response to a property skilled.
Home-hunters may have extra negotiating energy as gross sales choose up, in response to Rightmove’s Tim Bannister.
However he warned that the ending of a stamp responsibility low cost within the spring might have an impact, amid ongoing financial uncertainty and potential rate of interest cuts.
Banking physique UK Finance stated it expects to see a gradual enchancment in mortgage affordability in 2025, serving to potential homebuyers.
Card spending by customers climbed 1.6 per cent in 2024 — however significantly decrease than 2023’s 4.1 per cent progress.
Barclays stated that it had been because of Brits limiting foods and drinks buys — and prioritising purchases as an alternative on reasonably priced treats.
Vitality invoice rise
9 million households have been suggested to ship meter readings to their power provider as costs rise right now.
The common invoice throughout England, Scotland and Wales will climb 1.2 per cent after Ofgem raised its worth cap in response to wholesale costs. An additional 3 per cent hike is forecast for April — however consultants at Cornwall Perception warned “customers should brace for continued fluctuations.”
The newest worth cap is 10 per cent or £190 decrease than a 12 months earlier.
