A tremendous record high for the FTSE 100! So it has reached above the 10,000 point for the first time, beating the progress of the 100 largest companies on the London Stock Exchange. The rise meant that as of Monday’s trading hours, the market had attained an ever-sparkling peak of 10,046.3 points. Moments before noon it reversed back down to 9,981.21 index points. The index had a phenomenal run over the last year. It now sits over 21% higher than a year ago, when it was slightly over 8,260 points.
Our recent surge demonstrates the profound resilience and latent potential of UK equities. Specifically, the FTSE 100 has done better than many of the other large global markets, such as France’s CAC 40 and the US’s S&P 500. It seems like the index is exploding upwards! This expansion has been driven by its remit to large international businesses, meaning they derive a significant portion of their revenue from markets outside the UK.
Among the companies that have played a part in this growth are household names such as Rio Tinto, Babcock and Rolls Royce. These firms have all profited hugely from escalating prices in both gold and silver, and a global surge in defence spending. The FTSE 100 reflects this unusual industrial diversity, with large representation from mining and banking. This rich mix lures investors seeking refuge in volatile, unpredictable economic climates.
Trade resumed on the first day after the New Year holiday on a very positive note. The FTSE 100 jumped up more than 1% in the first hour alone! This performance was an all-time new high intraday record, indicative of the renewed investor confidence regarding Britain’s economic prospects.
The chancellor of the Exchequer, Rachel Reeves, remarked on the significance of this achievement, labeling it “a vote of confidence in Britain’s economy and a strong start to 2026.” This announcement emphasises the need and opportunity to continue to invest more and faster into UK shares.
Investment analyst Dan Coatsworth had weighed in on the FTSE 100’s performance. He noted that Reeves has been “banging the drum about the merits of investing over parking cash in the bank.” Investors are changing the game. They are looking to equity markets for returns rather than parking cash in savings accounts.
Coatsworth further emphasized that “investors often seek solace in companies whose goods and services should be in demand no matter what’s happening in the world.” This is the view which makes the FTSE 100 impoverished post pandemic investment option even more alluring. It provides relative safety when the market is volatile.