![\"Reeves](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2025\/08\/Reeves-at-Rolls-Royce-Inchinnan.png\")
London\u2019s top shares index could be poised for a \u201cfairytale ending\u201d to the year as one of the global stock markets to enjoy a strong return for investors.<\/p>\n
The FTSE 100 today hit a new closing high of 9,940.71, up 74 points on the day and representing a year-to-date gain of about 22% ahead of the final and shortened trading session of 2025.<\/p>\n
That is more than twice what it achieved in 2024 and ahead of the 17.2% from the S&P 500 index in the US.<\/p>\n
The surge comes against headwinds such as the continuing war between Russia and Ukraine and President Trump\u2019s tariffs in the spring.<\/p>\n
Danni Hewson, head of financial analysis at AJ Bell, said \u201ca fairytale ending to the year\u201d looks likely for London\u2019s blue-chip index which is \u201ctantalisingly close to that 10,000 mark which at the start of the year seemed inconceivable.\u201d<\/p>\n
At a time when technology is all the rage, it has been \u201cold economy\u201d stocks such as miners, banks and defence companies that have propelled the index this year.<\/p>\n
Shares in Babcock International<\/strong>, the defence company, have surged by 148% and engineering group\u00a0Rolls-Royce<\/strong>\u00a0has more than doubled, while Fresnillo, Endeavour Mining, Lloyds Bank, Barclays <\/strong>and Standard Chartered<\/strong> have also been among the biggest risers.<\/p>\n Investors looking for income growth have turned to the stock market for better returns as interest rates have fallen.<\/p>\n A third of blue-chip companies offer a higher yield than the current central bank interest rate. Dividend yields of around 8% at\u00a0Legal & General Group<\/strong>\u00a0and\u00a0Phoenix Group Holdings<\/strong> continue to highlight the income appeal of the FTSE 100 index.<\/p>\n Retirement and savings business Phoenix yields dividend income of 7.6%, having increased its half-year payment in October by 2.6% to 27.35p a share. The Standard Life brand owner\u2019s strong level of cash generation means the dividend is well covered, with \u00a3300 million a year of excess capital a source of financial flexibility.<\/p>\n \t <\/div>\n