As FTSE 100 Eyes Best Year Since 2009, Smaller UK Names Struggle

After the strongest performance by the FTSE 100 in 16 years, the UK’s more domestically focused shares look set to muddle along for yet another spell as the economic backdrop remains bleak.

The UK’s blue-chip gauge has defied expectations in 2025, rising 19% and outperforming the S&P 500 and Euro Stoxx 50. But domestic peers have been left behind. The FTSE 250 is up just 6.5% as high interest rates, a downbeat economy and a growing tax burden weigh on sentiment.