FTSE 100 gains 6% in 2024 despite ‘lack of enthusiasm’ for UK stock markets
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The UK’s FTSE 100 has gained nearly 6% over 2024, having reached an all-time high during a year that saw the cost-of-living crisis ease, the Bank of England start cutting interest rates, and a new government take shape. A “lack of enthusiasm” for London’s top stock market index nevertheless meant it lagged behind its US rival for another year, experts said.
The index gained nearly 440 points, or 5.7%, from the last trading day of 2023 to December 31 2024. Signs of stronger investor confidence at the start of the year helped push the FTSE 100 to several all-time highs, peaking at a close of 8,445.8 on May 15.
The rally followed a spout of encouraging economic news for the UK, with official data estimating that the economy rebounded out of a recession in the first quarter of the year, and inflation retreating towards the 2% target level. But the rally subsided over the second half of 2024, despite a landslide victory for the Labour party in July’s general election ushering in a period of political stability.
Markets analyst Michael Hewson said: “The performance since that record high has been symptomatic of the FTSE 100 over the years, a brief pop to new highs and then the rally fizzles out and the index slips back into a range again.”. He added that despite the overall gains, the the UK stock market “appears to be suffering from a significant lack of enthusiasm on the part of global investors, especially when you look at its performance relative to its peers”.
