The FTSE 100 index surpassed the 10,000-point mark for the first time on Friday, the first trading day of 2026, reaching a high of 10,046 before easing slightly. The milestone caps a stellar year for the UK market, with the index rising 21.5% over the past 12 months.
The blue-chip index, created in 1984, was lifted by gains in Rolls-Royce and Burberry, which rose about 4%. The rally occurred during the 'Santa Claus rally period', the last five trading sessions of the year and the first two of the new year, when shares often rise amid light trading volumes.
Chancellor Rachel Reeves hailed the milestone as 'a vote of confidence in Britain’s economy and a strong start to 2026'. Dan Coatsworth of AJ Bell said the breakthrough was 'the best new year’s present Rachel Reeves could want', adding that it proves 'the UK market is not stuck in the mud'.
The FTSE 100's rise helped push the pan-European Stoxx 600 index to a record high, led by mining and energy sectors. Global markets have been buoyed by hopes of interest rate cuts, the AI boom, and easing trade war tensions after initial tariffs by Donald Trump caused a wobble last April.
The index contains major international companies including Rio Tinto, BP, AstraZeneca, and HSBC. Fresnillo was the best-performing stock last year, up 450% on higher gold and silver prices, while defence stocks like Babcock and Rolls-Royce doubled in value. A poll by eToro found 53% of UK retail investors expect the bull market to continue through 2026.
