On Tuesday, Britain’s FTSE 100 index hit an astonishing record high. It reached an all time intraday high at 10,046.3 points, reflecting the continued strength of the biggest corporates on the London Stock Exchange. This milestone is particularly notable given the 1.25% spike at the start of trading on Sunday night. It further underscores the 115-point increase over the previous close. That’s quite an accomplishment! It illustrates the growing confidence investors have in the big global companies that dominate the index.
The FTSE 100 had some of its highest ever closes. That doesn’t mean it is a perfect reflection of the UK economy. A significant percentage of the revenues for most of the companies included in the index are derived from international markets. The index is up over 21% from a year ago, having just recently peaked over 8,260 points. This gain is not indicative of overwhelming favorable domestic economic fundamentals.
The FTSE 100 reached a record high of 10,046.3 points. Just past noon, it slipped a little to 9,981.21 points. This recent run has turned the index into one of the strongest performers. It’s doing even better with respect to other large developed global markets, like France’s CAC 40 and the US S&P 500.
Analysts attribute the FTSE 100’s recent success to increases in share prices across the economy. They especially want to increase the increases by precious metal mining, Defense, and financial services. These industries have performed exceptionally well over the last year, making them very attractive for investors seeking refuge from global turmoil.
Chancellor Rachel Reeves referred to this achievement as “a vote of confidence in Britain’s economy and a strong start to 2026.” Climbing above the 10,000-point barrier is an impressive accomplishment. It’s a sign that London’s blue-chip index has snapped back into favor with investors.
In the past, firms under the FTSE 100 have often fallen under the umbrella of “old and boring.” The country’s industry – including the profitable mining and banking sectors – has attracted foreign investors. They are in desperate need of clean, convenient, low-cost options during these economically volatile times.
Dan Coatsworth, an industry analyst noted the shift in attitude towards these firms. He stated that Reeves has been “banging the drum about the merits of investing over parking cash in the bank.” He noted that “investors often seek solace in companies whose goods and services should be in demand no matter what’s happening in the world,” reinforcing the idea that these companies can provide stability in volatile conditions.