FTSE 100 index hits 10,000 milestone in new year rally
The FTSE 100 index surpassed 10,000 points for the first time, passing a major milestone in the stock market on the first trading day of the year.
Stocks included in the index have performed strongly in 2025, putting the benchmark more than 21% higher than a year ago, when it was just above 8,260.
Rising share prices are good news for investors, including anyone with a pension or other savings and those investing in the stock market.
However, because the London index is dominated by large international companies, it is not a direct reflection of the performance of the UK economy.
The FTSE 100 tracks the performance of the 100 largest companies on the London Stock Exchange. This includes mining firms Antofagasta, Rio Tinto and Peers Endeavor, which are on the rise due to rising metal prices.
Defense companies also performed strongly; In addition to Bae Systems, Babcock and Rolls-Royce, the values of major banks such as Lloyds, Barclays, Standard Chartered and HSBC also increased.
AJ Bell head of markets Dan Coatsworth said: “This is a historic moment and makes 2026 one of the most important years for the premier index since its launch in 1984.”
He said passing the 10,000 point threshold was “the best New Year’s gift Chancellor Rachel Reeves could have asked for.”
“The successes of the FTSE 100 show what is possible when buying UK shares.
“This also proves to skeptics that the UK market is not stuck in the mud and the US stock market is not the only place to make money.
