The FTSE 100 index has climbed above 10,000 points for the first time, passing a significant stock market milestone, on the first trading day of the year.
Shares included in the index performed strongly in 2025, leaving the benchmark more than 21% higher than a year ago, when it stood at just over 8,260.
Rising share prices are good news for investors, including anyone with a pension or other savings that are invested in the stock market.
But the London index is dominated by large international companies, so is not a direct reflection of the UK economy’s performance.
Share prices on the FTSE 100, which tracks the performance of the 100 largest companies listed on the London Stock Exchange, have surged over the past year, thanks to strong gains in some sectors including precious metal mining, defence and financial services.
Rising gold and silver prices boosted firms such as Rio Tinto, while increased global defence spending lifted contractors including Babcock and Rolls-Royce – amid economic uncertainty and geopolitical tensions.
The British benchmark set a new all-time intraday record as trading resumed after the new year holiday, rising more than 1% within the first hour to reach 10,046.3 points – up 114.9 from its previous level, before falling back below the threshold.
Susannah Streeter, an independent financial commentator, said the 10,000-point marker was “a psychologically important milestone” and showed London’s blue-chip index was “back in favour” with investors.
“Concerns continue to swirl about the super-high valuation of US tech sector,” she said, making the UK market more appealing.
Dan Coatsworth, head of markets at AJ Bell, said crossing the 10,000-point was a New Year’s gift for the chancellor, Rachel Reeves, who has been calling for more investment in the share market to boost economic growth.
“She has been banging the drum about the merits of investing over parking cash in the bank.
“The FTSE 100’s achievements just go to show what’s possible when buying UK shares,” he said.
The FTSE 100’s had outperformed US’s S&P index in 2025, he added.
While some London-quoted companies were sometimes considered “old and boring” its mix of industries, including mining and banking, appealed to investors seeking stability during uncertain times, he said.
“Investors often seek solace in companies whose goods and services should be in demand no matter what’s happening in the world.
“For example, we all need to pay insurance or water bills, or those in the habit are still likely to buy cigarettes or vapes, and the FTSE 100 has plenty of companies playing on these themes on offer.”
