The FTSE 100 above 10,000 is now a reality. It hit this historic mark on the first trading day of 2026. The index rose more than 21% in 2025, up from about 8,260 a year earlier.
This rally benefits millions of investors. Anyone with a pension or savings in UK stocks gains from the rise. However, the FTSE 100 doesn’t reflect the UK economy directly. Most of its companies earn revenue overseas.
Strong gains came from key sectors. Mining firms like Rio Tinto, Antofagasta, and Perseus surged on higher metals prices. Defense stocks also climbed. BAE Systems, Babcock, and Rolls-Royce all gained value due to rising global defense demand.
Major banks added momentum too. Lloyds, Barclays, Standard Chartered, and HSBC saw share price increases. Investors welcomed their solid financial performance and stable outlooks.
Dan Coatsworth, head of markets at AJ Bell, called it “a historic moment.” He said it’s one of the most significant years for the index since 1984. Crossing 10,000 points, he added, is “the best New Year’s present Chancellor Rachel Reeves could want.”
He also pushed back on UK market pessimism. “This shows what’s possible when buying UK shares,” he said. “The market isn’t stuck in the mud.” Plus, he noted, the US isn’t the only place to earn returns.
For years, US tech stocks dominated attention. Now, the FTSE 100’s rebound highlights the strength of value-focused, dividend-paying companies. Its global reach and sector mix have proven resilient.
Still, risks remain. Currency swings, trade tensions, and policy changes could cause volatility ahead. But for now, the FTSE 100 above 10,000 signals confidence—and a strong start to 2026.
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