THE Financial Times Stock Exchange (FTSE) has broken the 10,000 points mark for the first time in “a historic psychological milestone”.
The new high was reached within a half hour of the first day of trading in the New Year – though it has since dropped back below the mark.
The FTSE 100 comprises the 100 most valuable companies listed on the London Stock Exchange including mining and international oil and gas companies.
Lenders such as Barclays, Natwest, HSBC and Lloyds and supermarket chains Tesco, Marks & Spencer and Sainsbury’s are included.
Antonia Medlicott, Founder & MD at London-based Investing Insiders, said it was a “significant milestone”.
She added: “A high of 10,000 feels like a significant milestone, but it shouldn’t be confused with a signal to pile more money in the FTSE 100. Markets that break new highs often do keep rising, but that’s a trend, not a guarantee.
“The 10,000 milestone points to rising earnings for FTSE 100 companies, and is a sign of rising investor confidence in UK companies. Both of which are to be celebrated.
“But it doesn’t tell you everything you need to know as an investor. It doesn’t tell you whether the UK market is fairly valued, or whether international investors showing favour towards the FTSE’s more traditional sectors is, in fact, a reaction to fears about the over-valuation of global tech stocks. Decisions about where to invest should be driven by your long-term goals, not round numbers.”
It sets a bullish tone for the year
Tony Redondo, Founder at Newquay-based Cosmos Currency Exchange, said it was a big moment for the UK.
He continued: “Jackpot in the City of London this morning with the FTSE 100 hitting 10,000 for the first time, a historic psychological milestone. This milestone validates the ‘Old Economy’ giants – banks, miners, and energy firms – that dominate the London market.
“It reveals a British business landscape defined by global resilience and high dividend yields rather than high-tech growth. Since 75% of these firms’ revenues are earned abroad, this peak reflects global stability and a weaker pound, more than domestic UK strength.
“For 2026, expect a ‘tug-of-war’ around the 10,000 level as markets digest interest rate shifts. We will likely see increased Mergers and Acquisitions (M&A) activity as UK assets gain favour as they’re cheap by international standards, alongside a widening gap between these international blue-chips and smaller, domestic-focused companies. This record sets a bullish tone for the year, which I fear will be quickly worn away by all the economic and political ills the UK faces.”
Gread news for those invested in the FTSE 100
Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, said it was “great news”.
He continued: “Significant milestone for the FTSE 100, an increase of over 21% since January 2025. Whilst there are stalwart UK businesses within the index, the majority of the companies in the index are overseas-based, making the FTSE 100 not reflective of the UK economy’s performance, which has been sliding for some time.
“This is great news for those invested in FTSE companies, such as pension funds, but the UK economy and FTSE 100 are largely mutually exclusive these days.”
Prem Raja, Head of Trading Floor at Currencies 4 You, said it wasn’t just about a strong UK economy.
He added: “The FTSE 100 breaking 10,000 is a major psychological milestone, but it reflects global dynamics more than a sudden revival in the UK economy. The index rose just over 20% in 2025, its strongest year since 2009, driven by strong global risk appetite and the FTSE’s sector mix.
“Heavy exposure to miners, energy, defence and banks has been a clear tailwind, while many of the largest constituents earn the bulk of their revenues overseas. In that sense, the rally captures global growth, commodity prices and dollar earnings rather than the health of the UK high street. It also highlights how undervalued UK equities had become.
“A more predictable policy backdrop, alongside attractive dividends and buybacks, has helped narrow the long-standing ‘UK discount’ and draw investors back to London. What it does not signal is a booming domestic economy. UK growth in 2026 is still expected to be modest, consumers remain under pressure and the more UK-focused FTSE 250 has lagged.”
It reveals nothing about British business
Kundan Bhaduri, Entrepreneur, Investor and Landlord at London-based The Kushman Group, said we should not be too celebratory about the news.
He added: “Today’s news of this psychological barrier being breached matters primarily because fund managers and pension schemes love round numbers for their PowerPoint presentations to trustees. The index gained 22% in 2025, driven largely by defence stocks like Rolls Royce and Fresnillo, which surged 450% as gold prices rallied amid global uncertainty.
“Yet this is largely due to international earnings and commodity cycles rather than any sudden revival in British economic dynamism. What everyone forgets to mention is that the FTSE remains a collection of miners, oil companies, and banks earning most of their money overseas.
“The domestic economy that house builders and small businesses actually inhabit tells a different story. House prices fell 0.4% month on month in December, with annual growth slowing to just 0.6%, the weakest in 3 quarters.”
David Belle, Founder and Trader at Fink Money, also said Britain is not in a great position.
He continued: “It reveals nothing about British business since British profit margins are at their lowest level since the early 80s. As we know, the FTSE 100 is dominated by sales overseas, which implies US growth as the biggest driver.
“The Labour Party might like to parade this around, but it shows nothing about the British economy and says everything about the US economy, who tend to be the largest buyers of goods and services provided by FTSE 100 firms. A lot of this is driven by financials and mining firms, where the copper, gold and silver rallies have really broadened their margins, and clearly their orderbooks.
“But to what extent does this come back to the UK economy? Well, the listing might be here, but is tax collected here or in subsidiaries around the world? Is employment conducted here in the main or is that in the countries where the activities are carried out (barring the banks of course)?”
Photo by Олег Мороз on Unsplash.
