UK Stock Market Today: FTSE 100 on Pause for Boxing Day, but 2026 Signals Are Already in Focus

The UK stock market is closed today for the Boxing Day bank holiday. However, the lack of price action has not stopped investors from assessing where UK equities stand after a strong 2025 and what could shape the market when trading resumes.

Last London Session: Quiet End to Christmas Eve

In advance of the holiday season, the last market session saw UK equities trend downwards. The FTSE 100 index lost approximately 0.19% (9,870.68), while the FTSE 250 index lost approximately 0.16% (22,312.50) as the investor base made position adjustments.

Healthcare stocks, specifically AstraZeneca and GSK, lost a combined 0.95%. However, the transition away from healthcare-related Eurozone equities is continuing to benefit UK equity markets overall.

Among corporate transactions that attract attention, BP confirmed the sale of a major share of Castrol Oil Company to a German company for approximately $6.5 billion in cash. The sale will further solidify BP's current strategy of strengthening its balance sheet through capital discipline.

What's Next for the FTSE 100?

The expectation of continued improvements in the Eurozone, Lower Oil Prices, and Strengthening Bank Earnings has created a light uplift in UK Stock Prices this week.

Although investor sentiment appears to have stabilized to a degree, UK stocks performed well into 2025, as evidenced by the FTSE 100's anticipated increase of 20% for the year. In addition, the FTSE 100 is likely to outperform its European and US counterparts due to the index's heavy weighting within commodity and financial stocks and selected UK Defence stocks.

Mining shares have been the standout performers, backed by record metal prices. Financials, including globally exposed banks, have also held firm.

Global Backdrop: Metals Rally Steals the Spotlight

While London is closed, global markets are still active. Asian equities traded higher in holiday-thinned sessions, supported by year-end risk appetite and a softer US dollar. 

More notably, precious metals surged, with silver hitting a fresh record and gold and platinum extending their 2025 rallies.

London-listed miners such as Fresnillo and Endeavour Mining were among the strongest FTSE performers this year, driven by sustained strength in metals prices.

Retail Signals: Mixed Messages from Boxing Day

Boxing Day remains a key sentiment marker for UK consumer stocks. The Guardian reported research suggesting shoppers could spend about £3.8 billion over Boxing Day 2025, up roughly 2% year-on-year. 

The Times, citing Barclays card-spending analysis, reported a more downbeat view: Boxing Day sales could fall by around £1 billion to roughly £3.6 billion, as cost-of-living pressure keeps consumers cautious.

Rates and the Road Into 2026

The Bank of England has begun easing policy, cutting rates to 3.75% in December while signalling a gradual path ahead. 

This “slow-cut” narrative is likely to dominate early 2026, shaping sterling moves and sector rotation.

Also Read: Stock Market Today: Sensex Slips 275 Points, Nifty Below 26,100; Titan Rises 1.37%

Outlook 

The tone going into 2026 is cautiously constructive, but with caution. Interactive Investor reported that UBS expects growth to improve in 2026, forecasting profit growth of 5% in 2026 and around 15% in 2027. 

UBS held a Neutral stance on UK equities and laid out scenarios for the FTSE 100: a base case of 10,000 by end‑2026, an upside of 10,800, and a downside of 7,200 in its most pessimistic case. 

It also noted the FTSE 100’s significant reliance on commodity price trends and that a large share of revenue is generated outside the UK, making sterling movements important for local-currency returns.