London’s FTSE 100 tops milestone 10,000 mark for the primary time after new yr rally

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Your help makes all of the distinction. Learn extra The FTSE 100 has risen above 10,000 factors for the primary time, reaching a significant milestone following a rally on the flip of the brand new yr.

Throughout the course of 2025, the index of Britain’s largest public corporations rose 21.5 per cent, its greatest total annual efficiency because the aftermath of the worldwide monetary disaster in 2009.

And the brand new yr has began in comparable trend to hit a brand new all time intraday excessive, with merchants’ return to work after the New Yr’s Day financial institution vacation sending the index greater than 1 per cent greater in fast trend.

Regardless of pulling again from that degree after the primary hour of enterprise, it nonetheless noticed the index surpass the ten,000 milestone for the primary time, with the likes of Rolls Royce and miner Fresnillo main the cost.

London’s prime tier was strengthened final yr by the hovering share costs of a few of its constituents, together with treasured steel miners, defence and monetary providers companies.

Traders have been drawn to the relative resilience of the shares amid turbulence within the wider monetary markets, international political uncertainty, and a lacklustre efficiency for the UK financial system.

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Dan Coatsworth, head of markets at AJ Bell, mentioned: “This can be a historic second and already makes 2026 some of the vital years for the blue-chip index since its launch in 1984.

“Breaking via the ten,000 degree is the most effective new yr’s current Chancellor Rachel Reeves may need.

“She has been banging the drum concerning the deserves of investing over parking money within the financial institution, and the FTSE 100’s achievements simply go to point out what’s attainable when shopping for UK shares.

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“It additionally proves to cynics that the UK market is just not caught within the mud, and that the US inventory market is just not the one place to become profitable.”

Defence companies had been amongst shares main the brand new yr cost in skinny buying and selling volumes, with engine-maker Rolls-Royce the highest blue chip riser with a 3% achieve, adopted not far behind by sector friends Babcock Worldwide and BAE Techniques, each slightly below 3% greater.

It continues a powerful run for the defence sector, which loved stellar positive factors in 2025 as geopolitical tensions continued to rise, with Rolls and Babcock seeing their share costs roughly doubling.

Oil agency BP lifted 2% because it continued to stride greater after revealing Meg O’Neill will turn out to be its new chief government in April, changing Murray Auchincloss, who stepped down final month after lower than two years within the position.

The FTSE 100 closed 2025 at 9,931.38, capturing previous document excessive ranges on a number of events via the yr and outperforming many European and US friends, together with France’s Cac 40 and New York’s S&P 500.

Traders had been drawn to the regular positive factors of FTSE-listed companies, which got here despite weak point within the wider UK financial system and political uncertainty prompting vital volatility within the international inventory markets.

It was a very sturdy yr for treasured steel producer Fresnillo, whose share worth soared by about five-fold over 2025, whereas gold miner Endeavor Mining’s shares jumped by practically three-fold.