Britain’s FTSE 100 hits 10,000 mark in strong start to 2026
In 2025, it gains nearly 22% due to record precious metal prices and increased defence spending in Europe
[LONDON] London’s blue-chip Financial Times Stock Exchange (FTSE) 100 index hit the symbolic 10,000 points mark for the first time on Friday (Jan 2).
This reflects a wider surge in global equities and provides a strong start to 2026, for a stock market that had lagged behind peers for years.
The benchmark crossed the milestone early on the first trading day of 2026. It gained nearly 22 per cent in 2025, its best year since 2009, outperforming Europe’s broad Stoxx 600 index and the S&P 500.
“It’s nice to be going into 2026 with a good news story,” said Danni Hewson, head of financial analysis at AJ Bell.
“We’ve been talking down UK stocks for an awfully long time so to begin the year on the front foot, and for the momentum of 2025 to continue into 2026, psychologically that is going to have an impact,” she added.
The FTSE 100 was last trading a fraction shy of the 10,000 level, up 0.4 per cent on the day.
Stocks around the world surged in 2025, driven in part by a rally in companies connected with artificial intelligence (AI), though British stock markets are little exposed to the sector.
Instead, its biggest gainers in 2025 included miners such as Fresnillo, boosted by record precious metal prices, and gains in defence companies, such as Babcock and Rolls-Royce, as Europe increased defence spending.
Banks, including Lloyds, were also strong, boosted by elevated interest rates alongside decent economic growth.
British markets have suffered from a lack of initial public offerings (IPOs) in recent years, while companies have left the market, through being bought, delisting or moving their primary listings away from London.
Political instability, bond market volatility and post-Brexit uncertainty added to the negativity, and with relatively few tech and AI-connected companies listed in London, British-focused fund managers have struggled to ward off sentiment that the greatest excitement is elsewhere.
“This (10,000) is an arbitrary number, but it is something that could get international investors more interested in the FTSE, so it is quite a big deal,” said Rory McPherson, chief investment officer at financial planning firm Wren Sterling.
“The FTSE has a wide sectoral base and appealing valuations,” he added.
Investors also say that the UK could offer diversification from high-flying tech stocks, as concerns about an AI bubble persist.
Dealmakers anticipate that London could attract more IPOs this year, notably from Norwegian software company Visma, although higher share prices could make London-listed stocks less attractive to acquirers, after cheap valuations helped to make them the second most targeted globally last year.
British Finance Minister Rachel Reeves posted on social media platform, X: “The FTSE 100 breaking through 10,000 points for the first time is a vote of confidence in Britain’s economy, and a strong start to 2026.”
Still, the blue-chip index in 2025 trailed other markets such as Japan, Hong Kong, South Korea, Spain and Italy.
And while the FTSE 100, weighted heavily towards internationally focused companies, has outperformed, the domestically focused mid-cap FTSE 250 has lagged, rising roughly 9 per cent in 2025. REUTERS
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