London’s FTSE 100 tops milestone 10,000 mark after new year rally

The UK’s FTSE 100 has risen above 10,000 points for the first time, reaching a major milestone following a rally at the turn of the new year.

It means the blue-chip index has hit a new all-time intraday trading high, after rising as much as more than 1% to 10,046.3, 114.9 points higher, within the first hour, as traders returned from the new year holiday.

The FTSE 100 has teetered close to the milestone mark in recent months after a knockout year that has seen it rise by 21.5% – the most since 2009.

London’s top tier was strengthened last year by the soaring share prices of some of its constituents, including precious metal miners, defence and financial services firms.

Investors have been attracted to the relative resilience of the stocks amid turbulence in the wider financial markets, global political uncertainty, and a lacklustre performance for the UK economy.

Dan Coatsworth, head of markets at AJ Bell, said: “This is a historic moment and already makes 2026 one of the most significant years for the blue-chip index since its launch in 1984.

“Breaking through the 10,000 level is the best new year’s present Chancellor Rachel Reeves could want.

“She has been banging the drum about the merits of investing over parking cash in the bank, and the FTSE 100’s achievements just go to show what’s possible when buying UK shares.

“It also proves to cynics that the UK market is not stuck in the mud, and that the US stock market is not the only place to make money.”

Defence firms were among stocks leading the new year charge in thin trading volumes, with engine-maker Rolls-Royce the top blue chip riser with a 3% gain, followed not far behind by sector peers Babcock International and BAE Systems, both just under 3% higher.

It continues a strong run for the defence sector, which enjoyed stellar gains in 2025 as geopolitical tensions continued to rise, with Rolls and Babcock seeing their share prices roughly doubling.

Mining giants were also among those seeing the biggest share increases, with silver specialist Fresnillo 3% ahead, while Glencore and Antofagasta likewise enjoyed new year boosts, up 2% each.

Oil firm BP lifted 2% as it continued to stride higher after revealing Meg O’Neill will become its new chief executive in April, replacing Murray Auchincloss, who stepped down last month after less than two years in the role.

The FTSE 100 closed 2025 at 9,931.38, shooting past record high levels on multiple occasions through the year and outperforming many European and US peers, including France’s Cac 40 and New York’s S&P 500.

Investors were drawn to the steady gains of FTSE-listed firms, which came in spite of weakness in the wider UK economy and political uncertainty prompting significant volatility in the global stock markets.

It was a particularly strong year for precious metal producer Fresnillo, whose share price soared by about five-fold over 2025, while gold miner Endeavor Mining’s shares jumped by nearly three-fold.