On Friday, the UK’s main stock market, the FTSE 100 Index, reached a new high. In doing so, it rocketed over the 10,000-point threshold for the first time ever! This accomplishment comes on the heels of one of our best years of all time. This success was driven by our strong performances in the precious metal mining, defense, and financial services sectors. The index shot up more than 1% in the first hour of trading. It touched an all-time, intraday high of 10,046.3 points – only to sharply pull back under that important level.
Yet over the last twelve months, the FTSE 100 has proved surprisingly robust. It has more than doubled, up over 21%, increasing from a little over 8,260 points one year ago. The recent surge is up 115 points from where it used to hang out. This increase reflects overwhelming investor confidence in the index’s continued growth. Too often, the FTSE 100 is used as a yardstick for Britain’s corporate health. Here’s the rub — the index is virtually dominated by large, international companies. This makes its performance a poor barometer of the state of the UK economy. Rather, it serves as a signal to global business activity as the majority of its members have historically garnered a large portion of their revenues overseas.
The index’s recent performance has been especially remarkable in relation to other major markets. The FTSE 100 has actually beaten France’s CAC 40 and the US’s S&P 500. Today’s performance underscores its tremendous appeal to investors looking for stability in a time of global economic uncertainty.
Dan Coatsworth, head of markets on investment platform AJ Bell, labelled the passage over the 10,000-point barrier “a New Year present to the chancellor, Rachel Reeves.” He noted that reaching this milestone is important not only for investors but for government leaders. The milestone is being portrayed by SIMPLE as a vote of confidence in Britain’s economy and a great start to 2026.
“Investors often seek solace in companies whose goods and services should be in demand no matter what’s happening in the world.” – Dan Coatsworth
The recent rally in the FTSE 100 has reached a new and troubling milestone. Vigorous growth in narrowly defined, unusually resilient sectors has much to do with this run-up. Precious metal mining, defense and financial services are behind that growth. They offer an excellent base to the index’s rising path. Investors have often reacted favorably to these sectors’ performance, seen as more recession-proof sectors and safer bets in times of economic turbulence.
Independent financial commentator Susannah Streeter described the FTSE 100 as “back in favour” with investors. This resurgence in the index’s popularity is arguably powered by the index’s recent performance as a hedge against inflation and economic uncertainty. The FTSE 100 is an attractive option as investors look for places to shovel their money into.
On Friday, the index slipped below the 10,000 mark for the first time this year, falling as low as 9,981.21 points just after noon. Its rapid return above the 10,000-point level shows its robustness and long-term market volatility endurance. This milestone has tremendous psychological value. It creates a sense of freshness that rejuvenates investors’ enthusiasm about the state of corporate Britain.