Finance
Britain's FTSE-100 hits 10,000 mark, getting 2026 off to strong start
Britain's FTSE-100 hits 10,000 mark, getting 2026 off to strong start
Published by Global Banking and Finance Review
Posted on January 2, 2026
By Alun John
LONDON, Jan 2 (Reuters) - London's blue-chip FTSE 100 index hit the symbolic 10,000 points mark for the first time on Friday, the latest sign of surging stock markets around the world, and a positive start to 2026 for the long unloved British market.
The British benchmark crossed the milestone early on the first trading day of 2026. It gained nearly 22% in 2025, its best year since 2009, outperforming Europe's broad STOXX 600 index and the S&P 500.
Stocks around the world surged in 2025, partly thanks to a rally in companies connected with artificial intelligence, though British stock markets are little exposed to the sector.
Instead, its biggest gainers in 2025 included miners such as Fresnillo, boosted by surging precious metal prices, defence firms such as Babcock and Rolls-Royce as Europe ramped up defence spending, and banks including Lloyds, which benefited from still elevated interest rates alongside decent economic growth.
GOOD NEWS STORY
"It's nice to be going into 2026 with a good news story," said Danni Hewson, head of financial analysis at AJ Bell.
"We've been talking down UK stocks for an awfully long time so to begin the year on the front foot, and for the momentum of 2025 to continue into 2026, psychologically that is going to have an impact."
British markets have been plagued by a dearth of initial public offerings in recent years as well as companies either delisting or moving their primary listings to other markets.
Political instability, bond market volatility and post-Brexit uncertainty have not helped, and with relatively few tech and AI-connected companies listed in London, Britain-focused fund managers have battled a sense that excitement lies elsewhere.
Hewson said this latter problem can also be an advantage for London-listed stocks.
"Investors have been looking again at UK-listed stocks, particularly the FTSE 100, .. people are concerned about a potential AI bubble, and are looking for stocks that hold value over time, and work in a global backdrop and are not fighting against geopolitical issues that could impact businesses," she said.
The FTSE, weighted heavily towards internationally focused companies, has also outperformed the domestically focused mid-cap FTSE 250. The latter rose roughly 9% in 2025.
Still, the blue-chip index in 2025 lagged other markets such as Japan, Hong Kong, Korea, Spain and Italy.
(Reporting by Alun John; editing by Dhara Ranasinghe and Philippa Fletcher)
