FTSE 100 Surpasses 10000 Milestone in New Year Trading Rally

Britain’s blue-chip stock index has surpassed the 10,000 threshold for the first time, opening 2026 with a historic peak following its strongest annual performance in sixteen years. The benchmark FTSE 100 reached an intraday high of 10,046.25 points during the first trading session before settling at a record close of 9,951.14, representing a 0.2 per cent gain of 19.76 points.

The achievement caps a remarkable 2025 for London’s premier equity gauge, which delivered a 21.5 per cent annual return. This marked the index’s most robust showing since 2009, outpacing both the S&P 500 and several European benchmarks including the pan-European Stoxx 600 and France’s CAC 40. Chancellor Rachel Reeves characterised the milestone as evidence of confidence in Britain’s economic fundamentals, though the majority of FTSE 100 constituent revenues originate from international operations.

The London market’s advance reflects a notable shift in global capital allocation patterns. Whilst the UK equity market lacks the substantial exposure to artificial intelligence-related technology stocks that propelled American indices higher, the FTSE 100 has benefited from robust demand across defence, mining, and financial services sectors. The index has also capitalised on evolving investor sentiment regarding US asset valuations.

For several years, international capital flows favoured American equities, which delivered superior returns supported by the technology sector boom. However, heightened volatility following President Trump’s tariff announcements last April, combined with mounting concerns over potential artificial intelligence market valuations, prompted institutional investors to pursue greater geographic diversification away from the increasingly expensive, technology-concentrated US market.

The comparatively attractive valuations in the UK market have positioned it as a primary beneficiary of this reallocation. The S&P 500 currently trades at approximately 22 times forward twelve-month earnings, whilst the FTSE 100 commands a multiple of roughly 13 times. Simon French, chief economist at Panmure Liberum, noted that the value proposition remains compelling even at the 10,000 level.

Strategists at Deutsche Bank offered a note of caution, observing that opening trading day performance has historically proven an unreliable indicator of full-year market direction. The first session’s results have shown little correlation with subsequent annual outcomes in recent trading periods.