The UK's blue-chip FTSE 100 index has reached a historic milestone, breaking through the 10,000-point mark for the first time on Friday. The index hit a high of 10,046 in early trading before easing slightly, capping a stellar year that saw a 21.5% rise in 2025.
The milestone was driven by strong performances from companies such as Rolls-Royce and Burberry, which rose about 4% on the day. 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 achievement as 'a vote of confidence in Britain's economy and a strong start to 2026'. Dan Coatsworth of AJ Bell called it 'the best new year's present Rachel Reeves could want', adding that it proves the UK market is not stagnant and that the US is not the only place to make money.
The FTSE 100's rise helped lift the pan-European Stoxx 600 to a record high on Friday, 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, which encouraged investors to diversify into cheaper markets like the UK.
The index, created in 1984 at 1,000 points, includes major companies such as Rio Tinto, BP, AstraZeneca, and Rolls-Royce. Fresnillo was the best-performing stock in 2025, up about 450%, while defence stocks like Babcock and Rolls-Royce doubled in value amid increased European defence spending.
