London’s FTSE 100 index soared past the significant milestone of 10,000 points for the first time, marking a historic moment after a strong rally at the start of the new year. The blue-chip index briefly climbed to an intraday high of 10,046.3 points, reflecting investor confidence returning after the holiday break.
FTSE 100 Reaches New High After a Stellar 2025
The FTSE 100’s rise caps off a remarkable year, with a 21.5% gain in 2025, its best performance since 2009. Despite falling back slightly to close the day at 9,951.14 points, the index remains near this new record level.
This rally was largely driven by strong performances in key sectors, including defence, precious metals mining, and financial services. The resilience of these stocks amid ongoing global political uncertainty and a sluggish UK economy has attracted investors seeking stability.
Key Drivers Behind the Rally
- Defence sector: Companies such as Rolls-Royce, Babcock International, and BAE Systems led gains, benefiting from increased geopolitical tensions. Rolls-Royce surged by 3%, continuing its momentum from 2025 where shares roughly doubled.
- Mining giants: Silver specialist Fresnillo rose 3%, with Glencore and Antofagasta both up around 2%, supported by rising commodity prices.
- Oil sector: BP shares gained 2% following the announcement of a new CEO, Meg O’Neill, signaling confidence in leadership and future growth.
Market Outlook and Expert Commentary
Dan Coatsworth, head of markets at AJ Bell, described the milestone as a “historic moment” and a strong indicator of UK market vitality. He emphasized that the FTSE 100’s performance demonstrates the potential returns from investing in UK shares, challenging the notion that the UK market is stagnant.
This strong showing also reflects positively on Chancellor Rachel Reeves’ push to encourage investment over saving cash, calling the milestone the “best new year’s present” for the UK’s economic strategy.
FTSE 100 in a Global Context
The FTSE 100 outperformed many international peers in 2025, including France’s CAC 40 and the US’s S&P 500. Its resilience highlights London’s continued importance as a global financial hub amid market volatility worldwide.