In the last week, the FTSE 100 index reached an all-time high! Since then, it rocketed over the 10,000-point threshold for the first time, as trading picked up from the New Year holiday. The index jumped more than 1% within the first hour of trading, hitting an early highest point of 10,046.3 points. On Friday, soon after midday, it became steady enough to hold day’s close at 9,981.21 points. Despite this extraordinary performance, 2022 was a year of tremendous underachievement. The index’s 21% jump—from a little more than 8,260 points one year ago—has brought the index to an all-time high.
The FTSE 100 is at record highs, powered by steep advances in 10 of 11 sectors. Precious metal mining, defense, and financial services are at the forefront. Rio Tinto’s stock price climbed as high as $61.60 as gold and silver prices skyrocketed. At the same time, contractors such as Babcock and Rolls-Royce benefitted from the overall increase in global defense spending.
The index recently broke through the 10,000-point barrier! This milestone marks a dynamic return of enthusiasm from investors to London’s blue-chip stocks. The chancellor, Rachel Reeves, welcomed the achievement, describing it as “a vote of confidence in Britain’s economy and a strong start to 2026.”
The FTSE 100’s impressive rise places it ahead of many other major markets, including France’s CAC 40 and the US’s S&P 500. Its success rests on a combination of heavyweight foreign firms. These firms generate a significant amount of their income (46% on average) from international markets rather than drawing predominantly from the UK economy. This feature makes the FTSE 100 a more accurate reflection of global business activity.
Market analyst Dan Coatsworth highlighted how attractive the FTSE 100 was. Its unique combination of industries attracts both domestic and foreign investors who are seeking an island of stability in turbulent economic waters. He emphasized that “investors often seek solace in companies whose goods and services should be in demand no matter what’s happening in the world.”
The index’s successes provide a glimpse of what can be gained by putting money into productive UK shares instead of low-interest savings accounts. Coatsworth remarked on the chancellor’s efforts to promote investment opportunities, stating, “She has been banging the drum about the merits of investing over parking cash in the bank.”
The FTSE 100 is on something of a roll of late, which is a good thing. Those gains don’t mean that the UK economy is doing well. Rather, it’s a further testament to the deep strength and resilience of global markets and investor sentiment.