The FTSE 100 ended 2024 on a high note, gaining 5.8% after a rangebound year. Banking stocks led the charge, while miners and builders lagged. Meanwhile, Bitcoin’s boom lost momentum in the year’s closing weeks, marking a mixed performance across markets, as Hargreaves Lansdown’s comment on the position.
Matt Britzman, senior equity analyst, Hargreaves Lansdown:
“The FTSE 100 wrapped up 2024 on a high note, shaking off a slow start to the session to finish the year in positive territory. After an impressive climb early on, the index hit an all-time high in May but couldn’t quite muster the momentum to break out of a rangebound pattern in the months that followed – ending the year up 5.8%. Meanwhile, it played second fiddle to the tech-fuelled US markets, where AI excitement sent the S&P 500 soaring. Back home, UK investors navigated a year of twists and turns, with two interest rate cuts offering relief while a tax-hiking budget put pressure on some domestic companies. It was a year of resilience rather than runaway success for the UK’s blue-chip benchmark.
Finance stocks have been cashing in over 2024, with the UK’s banking heavyweights leading the charge, closely followed by standouts in the insurance and asset management sectors. NatWest andBarclays stole the spotlight, surprising many after entering the year with low expectations. Fears of economic turbulence and a wave of loan defaults never materialized, and with interest rate cuts arriving at a gentler pace than anticipated, it’s been smoother sailing than some had feared. As we approach 2025, the banks look firmly anchored on solid ground. Meanwhile, air travel and holiday stocks have been flying high, with IAG and Rolls Royce soaring to the top of the UK’s performance charts. Despite facing headwinds from rising costs, consumers seem determined to prioritize pleasure over prudence, proving they’re all-in on making memories – even when the budget’s tight.
Down at the bottom of the leaderboard, mining giants hit a rough patch over the year, weighed down by a sluggish Chinese economy and stimulus measures that fell short of sparking the hoped-for rebound. Closer to home, the UK housing and real estate markets have also taken a hit. Housebuilders and real estate firms have been stuck near the bottom of the pile, as stubborn inflation has slowed the path to rate cuts, leaving the sector feeling the squeeze. But it’s not all doom and gloom. As we head into 2025, there’s a glimmer of hope for some of this year’s underperformers. Take Croda, for example – despite grappling with sector-specific challenges, the company appears to be charting a course toward recovery, offering a hint of optimism for what lies ahead.
Bitcoin had a landmark year in 2024, breaking through the $100,000 mark for the first time before retreating slightly as the year closed. The election of Donald Trump reignited hopes for a more crypto-friendly regulatory landscape, adding momentum to the growing institutional and retail interest in the cryptocurrency. While Bitcoin remains a highly volatile instrument, its increasing adoption and recognition are forcing investors to take a harder look.”
