FTSE 100 index hits 10,000 milestone in new year rally

The FTSE 100 index has climbed above 10,000 points for the first time, passing a significant stock market milestone, on the first trading day of the year.

Shares included in the index performed strongly in 2025, leaving the benchmark more than 21% higher than a year ago, when it stood at just over 8,260.

Rising share prices are good news for investors, including anyone with a pension or other savings that are invested in the stock market.

But the London index is dominated by large international companies, so is not a direct reflection of the UK economy’s performance.

The FTSE 100 tracks the performance of the the 100 largest companies on the London Stock Exchange. That includes mining firms Antofagasta, Rio Tinto and Peers Endeavour which have been boosted by surging metals prices.

Defence firms also performed strongly, with Bae Systems, Babcock and Rolls-Royce all saw their value increase, as did large banks, including Lloyds, Barclays, Standard Chartered and HSBC.

Dan Coatsworth, head of markets at AJ Bell, said: “This is a historic moment and already makes 2026 one of the most significant years for the blue-chip index since its launch in 1984.”

He said crossing the 10,000-point threshold was “the best New Year’s present Chancellor Rachel Reeves could want”.

“The FTSE 100’s achievements just go to show what’s possible when buying UK shares.

“It also proves to cynics that the UK market is not stuck in the mud, and that the US stock market is not the only place to make money.