On Friday, January 3, 2026, the FTSE 100 index surpassed the 10,000-point mark for the first time, reaching a new all-time intraday high. This occurred on the initial trading day of the year, following a period of substantial growth for UK shares in 2025. The index's performance was influenced by various economic factors and contributions from specific sectors and companies.
Index Performance Details
The FTSE 100 index initially exceeded the 10,000-point threshold at approximately 8:30 a.m. London time. During early trading, it reached an all-time high of 10,046.25 points. By 12:00 p.m. London time, the index was trading at 9,981 points, representing a 0.5% increase. The index ultimately closed the day at 9,951 points, marking a 0.2% increase from the previous close and establishing a new closing record.
2025 Market Context
The milestone follows a significant year for UK shares in 2025, during which the FTSE 100 experienced an increase of over 21%. This represented its largest annual gain in 16 years, with the index rising from approximately 8,260 points a year prior. The London index's performance in 2025 exceeded that of major American indexes.
Several factors were cited as contributing to the index's performance in 2025:
- Reductions in interest rates by the Bank of England.
- Reductions in borrowing costs by the US Federal Reserve.
- A global retreat in inflation rates.
- Increased gold and silver prices.
- Elevated global defense spending.
Contributing Companies and Sectors
Gains were observed across various sectors. Gold miner Fresnillo's share price contributed to the FTSE 100's performance on Friday, following a 436% increase in its stock in 2025, which coincided with multiple record highs in gold prices. Other precious metal miners, such as Rio Tinto, also benefited from rising commodity prices. Defense contractors, including Babcock and Rolls-Royce, saw gains linked to global defense spending. British brands like Currys and Next, as well as financial services companies, were also noted contributors.
Understanding the FTSE 100
The FTSE 100 tracks the performance of the 100 largest companies listed on the London Stock Exchange. Approximately three-quarters of the revenues generated by these companies originate from overseas operations. The index's performance impacts investors with pension or stock market savings but does not directly measure the overall performance of the UK economy.
Broader Market Movements
On Friday, gold and silver prices increased. Across Europe, the Paris and Frankfurt stock exchanges also registered gains. In Asia, the Hong Kong index closed with a 2.8% increase. Wall Street indices initially opened higher before moderating during morning trading.
The artificial intelligence (AI) sector demonstrated influence on international market performance. This included news of Baidu's chip unit filing for an Initial Public Offering (IPO) in Hong Kong. Chinese chip designer Biren Technologies saw its shares surge by as much as 119% during its Hong Kong IPO, which marked the exchange's first listing of the year. The company's listing raised over $700 million, closing at HK$34.46 after an intra-day high of HK$42.88, significantly above its offer price of HK$19.60. The expansion of the AI sector in 2025 was a factor in pushing global stock markets to record highs and led to AI chip manufacturer Nvidia achieving a $5 trillion valuation.
Market Observations
Financial analysts offered perspectives on the milestone. Toni Meadows, head of investment at BRI Wealth Management, stated that while reaching a large round number on an index can be psychologically significant, the stability of such a new level is dependent on solid underlying market foundations. Susannah Streeter noted the 10,000-point marker as a "psychologically important milestone" and mentioned ongoing discussions regarding valuations in the US tech sector. Dan Coatsworth highlighted the relevance of the threshold to Chancellor Rachel Reeves' advocacy for increased investment in the UK share market, noting the appeal of the FTSE 100's diverse industries to investors seeking stability.