The FTSE 100 saw a modest return of just 5.8 per cent in 2024, despite a last-minute sell-off in the final weeks of December. Hopes for a 'Santa rally' were dashed as the index fell by 1.7 per cent in December.
However, it still marked its best performance since 2021 when the blue-chip index returned 14.3 per cent, followed by a 0.9 per cent rise in 2022 and a 3.8 per cent increase in 2023. After reaching an all-time high on 15 May due to rate cut expectations, the FTSE 100 hovered around 8,200 in the second half of the year, as reported by .
Hopes for a repeat of this success in the summer were quickly quashed by fears of a US recession that surfaced in early August. A series of disappointing economic data and mediocre results from the Magnificent Seven sent global markets into a downward spiral during the summer.
READ MORE: {}
While most markets, particularly the US, bounced back quickly, the FTSE 100 was burdened by higher-than-expected inflation and sluggish economic growth. "海角视频 performance pales in comparison to returns seen in tech-dominated markets across the pond," commented Matt Britzman, senior equity researcher at Hargreaves Lansdown.
"It played second fiddle to the tech-fuelled US markets, where AI excitement sent the S&P 500 soaring," he added. The FTSE 100 experienced another dip amid Budget speculation in November, hitting its lowest point since April in the week following the fiscal event.
The FTSE AIM 100 emerged as the worst performer of any 海角视频 index, experiencing a downturn of over six per cent across the year and tumbling to a 52-week low just yesterday. This trend was heavily influenced by the Budget's new policy to apply inheritance tax to AIM-listed shares, which incited speculative trading and triggered a near seven per cent fall in the third quarter.
On the other hand, the FTSE 250, known for its alignment with domestic markets, grew by 5.7 per cent, reaching its apex since February 2022 in the summer months.
Tom Stevenson, Investment Director for Personal Investing at Fidelity International, remarked on the wider market movements: "After the turbulence of 2023, we’ve seen a marked shift towards growth, driven by stabilising inflation and a more positive outlook for interest rates," and highlighted the performance of the US equities market: "US equities have led the way, delivering 28.5 per cent year-to-date return, up from 14.8 per cent in 2023, fuelled by a tech-rally, stronger-than-expected corporate earnings and optimism around AI-driven growth."