London Stock Exchange Update: FTSE 100 Near Record Highs After a Strong 2025

As of 7:53 a.m. ET in New York on Saturday, December 27, 2025, the London Stock Exchange (LSE) is closed for the weekend — and it’s also coming off the Christmas holiday break.

That timing matters, because the LSE is heading into a classic “thin liquidity” stretch: fewer traders at their desks, wider bid–ask spreads, and price moves that can look louder than the underlying news. The next London session is set to reopen at 8:00 a.m. London time on Monday, December 29, according to the exchange’s own market status display. ^[1]

Below is the complete, up-to-date picture of where the London market left off, the biggest narratives shaping LSE-listed stocks right now, and what investors may want to have on their radar before the next trading session.

Is the London Stock Exchange open right now?

No. The London Stock Exchange is closed at the moment (weekend), and the market is scheduled to reopen Monday, December 29 at 08:00 London time. ^[2]

It’s also worth flagging the year-end schedule now, because it can affect liquidity, order execution, and headline-driven volatility:

The market operated a Christmas Eve half-day (closing process from 12:30 p.m. London time) and was closed Christmas Day and Boxing Day. ^[3]
New Year’s Eve (December 31, 2025) is also expected to be a half-day, with London markets closing at 12:30 p.m. ^[4]

Where the FTSE 100 left off: strong year, quiet finish

The LSE’s flagship index, the FTSE 100, finished the last pre-holiday session (the shortened Christmas Eve session) slightly lower, with Reuters reporting the index down 0.2% on the day amid position adjustments in heavyweight pharmaceuticals such as AstraZeneca and GSK. ^[5]

On the numbers, the FTSE 100 ended December 24 at 9,870.68, per Investing.com’s historical data for the index. ^[6]

The bigger story is the year, not the day:

Reuters noted the FTSE 100 is set to close 2025 with a ~20.7% gain, marking a fifth straight year of gains and outperforming major peers — a rally powered heavily by miners, financials, and defence. ^[7]
Reuters also highlighted that, at that point, the S&P 500 was up ~16.2% year-to-date, underscoring how unusually strong 2025 has been for the UK blue chips. ^[8]

One more practical detail for investors: the index has been trading not far from its recent peak. Investing.com lists a 52-week range topping out around 9,930.09, putting the latest close within striking distance of the high. ^[9]

The macro backdrop: Bank of England cuts, growth stays soft, sterling stays pivotal

London’s equity story right now is tightly tied to the UK rate path — and the Bank of England has already shifted the backdrop.

1) The Bank of England has started easing

The BoE cut its policy rate by 25 basis points to 3.75% in December, while emphasizing uncertainty in the outlook.

That matters on the LSE because rate expectations hit multiple FTSE-heavy sectors at once:

Banks and insurers react to changing net interest margin expectations.
Homebuilders and real estate react to mortgage-rate expectations.
Consumer-facing names react to the implied direction of household cashflow.

2) Data is sending a “soft growth” signal

Reuters reported official data showing UK GDP grew only 0.1% in Q3, with Q2 revised lower (to 0.2%), reinforcing the picture of a sluggish economy into year-end. ^[10]

3) Inflation cooled — and markets priced in cuts aggressively

Earlier in December, Reuters reported UK inflation fell to 3.2% (the lowest since March at the time), and rate markets moved close to pricing a cut as near-certain. ^[11]

Reuters also quoted Lale Akoner (eToro) describing the market logic: a cut would signal the start of an easing cycle aimed at supporting demand, with sterling and gilt yields reacting accordingly. ^[12]

4) Jobs data has also leaned toward “easing is coming”

Reuters reported the UK unemployment rate rose to 5.1%, adding to expectations that policymakers would cut to support a faltering economy. ^[13]

Why this matters for the London Stock Exchange specifically: the FTSE 100 is packed with global earners, so sterling moves can be as important as domestic data. A stronger pound can mechanically reduce the value of overseas revenues when translated back into GBP; a weaker pound can do the reverse.

Commodities are doing the heavy lifting again — especially miners and precious metals

The FTSE 100 is famously “old-economy weighted,” and 2025 has leaned hard into that.

Gold and precious metals

Reuters reported gold surged to an all-time high (cited at $4,440.21/oz in one market report), helping buoy UK-listed gold miners like Endeavour Mining and Fresnillo. ^[14]

Copper and the miners trade

Reuters also covered sessions where London miners gained on the back of record copper pricing, a recurring theme because large diversified miners are among the most influential FTSE constituents. ^[15]

Investor takeaway for the next session: watch what happens in global commodity pricing while London is closed. Monday’s early trade on the LSE often reacts to overnight moves in metals and energy — sometimes more than it reacts to UK-specific headlines.

Big corporate news shaping the tape: BP’s Castrol deal and year-end repositioning

Even during reduced-hours trading, a few company-level stories have been shaping sentiment:

BP and Castrol

Reuters reported that BP agreed to sell a 65% stake in Castrol to Stonepeak for about $6 billion, described as a significant step in BP’s $20 billion divestment plan aimed at cutting debt and boosting returns. ^[16]

Because energy is a major FTSE weight, big strategic moves like this can change index leadership — especially in thin markets.

Defensive rebalancing in megacaps

Reuters also noted investors “wound down” some positions in pharma heavyweights AstraZeneca and GSK during the shortened session — a reminder that index direction near year-end can reflect positioning as much as fundamentals. ^[17]

London listings, dealmaking, and the “cheap UK” narrative: still a major theme

If there’s one storyline that refuses to die (because the data keeps feeding it), it’s this:

UK-listed companies look cheap, and buyers keep shopping.

The Financial Times reported that overseas buyers were involved in $142 billion worth of UK takeovers in 2025 (a 74% increase from 2024), citing London Stock Exchange Group data — with the US a major source of inbound interest. ^[18]

This matters for investors in two ways:

It can support valuations via takeover premiums and “put-a-floor-under-it” psychology.
It can shrink the market when targets delist, which changes index composition and can reduce domestic choice over time.

Policy and reform: stamp duty break for new listings, and AIM rule changes

London hasn’t been passive about competing for listings — and several late-2025 developments matter heading into 2026.

1) UK to exempt new London listings from stamp duty (temporarily)

Reuters reported the UK will exempt new London Stock Exchange listings from stamp duty for three years, aimed at reviving the market and countering the draw of New York. LSE CEO Julia Hoggett welcomed it as an “important first step,” per Reuters. ^[19]

2) AIM reforms: reducing friction for growth companies

A Skadden analysis of LSE’s AIM reforms highlighted changes intended to lighten the regulatory burden and align more with Main Market requirements — including allowing dual-class share structures that meet Main Market-style standards, plus changes around reverse takeovers, disclosure thresholds, and financial reporting flexibility. ^[20]

This is a big deal in plain English: London is trying to make it easier (and cheaper) for growth companies to list and raise capital — without forcing them into a one-size-fits-all compliance box.

IPO outlook for 2026: signs of life, but not a return to the boom years (yet)

London’s IPO market has been the sore spot in the UK equity story. But there are hints of momentum.

Interactive Investor reported that late-2025 listings helped produce the UK’s “best half-year for IPOs in three years,” naming companies such as Shawbrook and Princes, which raised £750 million combined and later entered the FTSE 250. ^[21]

It also cited Peel Hunt saying: “The UK IPO pipeline remains constructive for 2026…” ^[22]

Among widely discussed potential candidates (speculation, not confirmations), the same report pointed to names such as Revolut, Waterstones, and the RAC as companies often mentioned in IPO chatter for 2026. ^[23]

Meanwhile, the legal industry is also signaling cautious optimism: Reed Smith’s London ECM team noted that while IPO volumes remain below historic levels, regulatory changes and AIM reforms could open opportunities for growth companies — and that secondary fundraisings remain a primary driver of activity. ^[24]

London Stock Exchange Group (LSEG) news: integrating market data into ChatGPT

When people say “London Stock Exchange,” they sometimes mean the venue (the market) — and sometimes they mean London Stock Exchange Group (LSEG), the listed company that owns and operates major market infrastructure and data businesses.

On that front, LSEG announced a new collaboration with OpenAI, with Reuters reporting that LSEG plans to integrate its financial data and analytics into ChatGPT, enabling credentialed users to access LSEG market data/news content within the ChatGPT app through a phased rollout starting in the week of December 8, 2025. ^[25]

Why investors care:

It’s part of the broader “AI distribution” battle for high-value financial data.
It reinforces LSEG’s strategy of embedding its content where workflows are moving — which increasingly includes AI interfaces.

What investors should know before the next London session

With London reopening Monday, December 29, here’s a practical, market-focused checklist built around what’s actually moving LSE pricing right now:

1) Expect thinner liquidity and sharper moves
Reuters explicitly noted year-end volumes taper as traders go on holiday and markets run reduced schedules. In these conditions, a small flow can move an index heavy with megacaps. ^[26]

2) Watch sterling first, not last
UK rate expectations have been swinging with inflation and jobs data. Sterling moves can quickly reshape the FTSE 100’s “translation effect” for multinational earnings. ^[27]

3) Track commodities into the Monday open
Gold and copper strength have been feeding directly into the FTSE via miners and precious-metal names. A weekend move in commodities can show up in London prices fast. ^[28]

4) Re-check the calendar: New Year’s Eve is a half-day
That’s not trivia — it changes how institutions execute, how auctions behave, and how “close” prices can be set. ^[29]

5) Keep an eye on deal headlines
Inbound M&A has been a defining feature of “cheap UK” markets in 2025, and it can re-rate sectors (and shrink the investable universe) quickly. ^[30]

6) Use order discipline in thin trade
This is less “hot take,” more microstructure reality: in low-liquidity sessions, consider limit orders over market orders, and be mindful around the open/close when price discovery can jump.

Bottom line

The London Stock Exchange is heading into its next session with a rare combination of forces:

A FTSE 100 near record territory after a ~20%+ year ^[31]
A Bank of England easing cycle starting to support risk assets, even as growth stays soft ^[32]
Commodity strength still powering heavyweight sectors ^[33]
A market structure story where M&A is booming, and policymakers are trying to make London more competitive for listings (stamp duty holiday, AIM reforms) ^[34]
And a major infrastructure player (LSEG) pushing market data deeper into AI workflows via OpenAI/ChatGPT integration ^[35]

Into Monday’s reopen, the most “London” thing to do is to stop thinking of the FTSE as a purely UK economic bet. It’s a global commodity + global rates + sterling + dealflow machine — and right now, all four gears are turning at once.

References

London Stock Exchange Update: FTSE 100 Near Record Highs After a Strong 2025 — What to Watch When Trading Reopens