In a historic moment for global finance, London's premier FTSE 100 index shattered the 10,000-point barrier for the very first time on Friday, January 2, 2026. The benchmark index for the United Kingdom opened the new trading year by scaling a fresh all-time peak, extending the powerful bullish momentum it built throughout the previous year.
A Historic Leap for London's Markets
During early trading deals, the UK's top-tier index, which is home to corporate giants like BP, Vodafone, and HSBC, jumped by 1.0 per cent to reach 10,033.75 points. This breakthrough represents a significant milestone for the London Stock Exchange and underscores a period of remarkable strength for British equities. The rally did not emerge from a vacuum; it was propelled by an outstanding performance in 2025, during which the FTSE 100 skyrocketed by more than 21 per cent. This was its most robust annual gain in 16 years, fueled primarily by supportive monetary policies.
The Driving Forces Behind the Rally
The stellar gains in 2025 and the continued surge into 2026 have been underpinned by a favourable shift in global economic conditions. Key factors include interest rate cuts in Britain and a parallel easing of borrowing costs in the United States, as pressures from worldwide inflation showed clear signs of receding. This created a fertile environment for equity markets to thrive. Leading the charge on Friday was precious metals miner Fresnillo. Its shares continued an astonishing ascent, building on a phenomenal 436 per cent surge in 2025 that was driven by gold prices repeatedly hitting record highs.
Part of a Global Stock Market Phenomenon
The FTSE 100's landmark achievement is not an isolated event but reflects a broader international trend. Stock markets across the globe scaled unprecedented heights throughout 2025, delivering double-digit gains across major indices from Wall Street to Asia. This synchronized global rally has been powered by easier monetary conditions and a significant strengthening of investor risk appetite worldwide. As central banks pivoted away from aggressive inflation-fighting measures, capital flowed freely into risk assets, setting the stage for record-breaking performances.
The historic crossing of the 10,000-point mark by the FTSE 100 signals robust confidence in the UK's corporate sector and aligns the London market with the powerful bullish wave sweeping through international finance as the new year begins.
