Posted By Uma Rajagopal
Posted on December 27, 2024
(Reuters) – Britain’s benchmark FTSE 100 was flat on Friday as losses in mining companies countered gains in energy stocks, and both indexes were on track to clock gains for the holiday-shortened week.
The blue-chip FTSE 100 was up 0.05%, while the midcap FTSE 250 was down 0.25% at 0938 GMT.
The energy sector rose 0.5% as oil prices nudged up on expectations that economic stimulus efforts would prompt a recovery in the world’s biggest oil importer, China. [O/R]
However, heavyweight miner Anglo American slid 1.2%, dragging the metals and mining index down 0.4% as a strong dollar weighed on metal prices.
The construction and materials sector led sector losses and slid 0.8%.
Although the year was marred by domestic economic slowdown, the two main indexes remained resilient and were on track to log yearly gains.
Finance Minister Rachel Reeves’ October budget announcement, which included 25 billion pounds ($31 billion) of tax increases for employers, added to uncertainty for businesses.
In 2025, the focus will be on what Donald Trump does when he arrives at the White House, as investors remain uncertain whether the U.S. president-elect could extend his tariff threats to Britain as well.
Investors will also be monitoring the pace of the Bank of England’s interest rate cuts, with the central bank already suggesting a gradual pace for its policy easing cycle.
Traders estimate just about 51 basis points worth of rate cuts by the end of 2025.
(Reporting by Nikhil Sharma; Editing by Abinaya Vijayaraghavan)
