On Friday, the FTSE 100 index carved out an impressive new all-time intraday record ending at an alarming time high. It shot up beyond that all-important threshold of 10,000 points for the very first time! The index jumped more than 1%, at one point hitting an all-time high of 10,046.3 points. It subsequently retreated, finishing a hair below that benchmark. This underlines a renewed confidence in the eyes of investors on London’s blue-chip stocks. The FTSE 100 is once again “in vogue” with investors.
The overall index jumped 115 points, the strongest showing in at least two years. This is indicative of positive market sentiment and a tremendous step forward in just one year’s time. The FTSE 100 is now up more than 21% on the past 12 months. It now seems destined to go much higher, far exceeding 8,260 points. This growth trajectory has led the index to soar past similar indices such as France’s CAC 40 and the US’s S&P 500. It demonstrates its extraordinary resilience even in spite of increasingly tenuous global economic conditions.
A little-known reason behind the FTSE 100’s soaring success is the astonishing performance of some of its constituent companies. Perhaps surprisingly, fashion retailer Next and luxury brand Burberry have proved especially resilient, propping up the index’s overall performance. Multinational corporations such as Rio Tinto have profited from the increased prices of gold and silver. At the same time, defense contractors such as Babcock and Rolls-Royce have profited from the increase in global defense spending.
Commenting on what this performance means, Dan Coatsworth, head of markets at AJ Bell said that. He continued that the FTSE 100’s successes show what can be done if you invest in shares in the UK.
“She has been banging the drum about the merits of investing over parking cash in the bank.” – Dan Coatsworth
The Financial Times’ 100-share index of London-listed companies, the FTSE 100, has hit record highs. It is still largely uncharted territory overwhelmingly controlled by global multinationals. Therefore, it is not a good indicator of the UK’s economic success. This trend mirrors the continuing strength in worldwide business activity. As the UK’s flagship trade body, many of its external constituents develop and produce a large share of their revenues from international markets – outside of the UK economy.
The mental game of breaking that 10,000 point threshold should not be overlooked. Supporters including analysts see this milestone as a vote of confidence in Britain’s economy. Taken together with the good news about 2026, it’s a very positive start.
“A vote of confidence in Britain’s economy and a strong start to 2026.” – The Chancellor
Soon after midday on Friday, the index plunged below 10,000 to close at 9,981.21 points, showing significant volatility even after the record highs earlier that week. This volatility could be a sign that even though investors are feeling optimistic overall, there is still some level of concern about an inevitable market correction.
Coatsworth further elaborated on investor sentiment by noting that “investors often seek solace in companies whose goods and services should be in demand no matter what’s happening in the world.” This approach illustrates a larger trend among investors seeking stable assets and predictable demand in the face of an uncertain economy.