The FTSE 100 was steady heading into Christmas as the UK’s leading index consolidated recent gains just below 9,900.
With a few trading sessions between Christmas and New Year, the FTSE 100 is still in with a chance of breaching 10,000 before the close of 2025.
But it seems unlikely that the level will be breached today with volumes low amid a shortened trading session.
“Not much seemed to be stirring on Christmas Eve on the UK stock market as the FTSE 100 drifted a little lower,” says AJ Bell investment director Russ Mould.
“Weakness in the dollar, expectations for further US rate cuts, concerns about government deficits and debt in the developed world and geopolitical tensions have all been combining to put precious metals on a pedestal.
“However, having hit record levels overnight there were signs of a modest pullback this morning after stronger-than-anticipated data on the US economy. GDP coming in materially ahead of forecasts also helped to propel the S&P 500 to its own all-time highs but has reduced expectations for a near-term cut to US interest rates, which in turn led to mixed trading in Asia.”
Very few stocks moved more than 1% on Christmas Eve, with little impetus for investors to take big bets ahead of a few days off.
The expectation was Metlen Energy & Metals, which rose over 3% and was the top riser.
BP provided the biggest corporate story of the day with the news that it would dispose of its lubricants business Castrol.
2026 will prove to be a fascinating year for the oil major as the new CEO contends with pressure from activist investors amid a rollback of its clean energy plans.
“The next key test for BP, which continues to have its feet held to the fire by activist investor Elliott, is a strategic review expected in February,” Russ Mould said.
“Recently departed boss Murray Auchincloss arguably never recovered from his own strategic reset in February this year which fell short of most investors’ expectations, so BP cannot afford a similar disappointment this time around.
“Unlike Auchincloss, freshly appointed chair Albert Manifold and incoming CEO Meg O’Neill are outsiders. This may make it easier to deliver radical change at BP after its failed effort to transform into a green energy powerhouse.”