New Year’s victory: FTSE 100 hits 10,000 mark for first time

The Financial Times Stock Exchange Index, FTSE 100 hits the new year with a 10,000 mark for the first time, achieving a milestone at the start of the new trading year.

UK’s blue-chip share index has broken through the 10,000-point level on January 1,2026 as global shares are lifted by a late “Santa rally.”

As reported by the Guardian, the last five trading sessions of the year and the first two of the new year are known as the “Santa Claus rally period,” when shares often rise amid light trading volumes.

Shares included in the index performed strongly in 2025, leaving the benchmark more than 21% higher than a year ago, when it stood at just over 8,260.

Rising share prices are good news for investors, including anyone with a pension or other savings that are invested in the stock market.

As reported, the FTSE 100 tracks the performance of the 100 largest companies on the London Stock Exchange, which includes mining firms Antofagasta, Rio Tinto, and Peers Endeavour, which have been boosted by surging metals prices.

Notably, defense firms also performed strongly, with Bae Systems, Babcock and Rolls-Royce all seeing their value increase, as did large banks, including Lloyds, Barclays, Standard Chartered, and HSBC.

Susannah Streeter, an independent financial commentator, said the 10,000-point marker was "a psychologically important milestone" and showed London's blue-chip index was "back in favor" with investors.

"Concerns continue to swirl about the super-high valuation of the U.S. tech sector, making the UK market more appealing," said Susannah.

Global markets have risen sharply over the past 12 months, lifted by hopes of interest rate cuts from central banks, the artificial intelligence boom and a supportive economic backdrop.

Dan Coatsworth, head of markets at AJ Bell, said crossing the 10,000-point was a New Year's gift for the chancellor, Rachel Reeves, who has been calling for more investment in the share market to boost economic growth.

“The FTSE 100's achievements just go to show what's possible when buying UK shares, as it had outperformed US's S&P index in 2025,” he added.