FTSE 100 Soars Past 10,000 Mark on Positive Investor Sentiment

The UK's FTSE 100 surpassed 10,000 points for the first time, driven by positive global market sentiment. The index's rise reflects investor confidence in UK market resilience and attractive valuations. The defense and aerospace sectors led gains, while diversified earnings and high commodity prices contributed to the performance.

The UK's FTSE 100 index reached an unprecedented milestone on Friday, exceeding the 10,000 mark during the opening session of 2026. This achievement was fueled by optimistic investor sentiment spreading across global markets, bolstered by the FTSE 100's noteworthy performance in 2025—the strongest in 16 years.

Axel Rudolph, senior financial analyst at IG, remarked that the surge is a strong indicator of sustained confidence in the resilience of UK earnings and their appeal to global investors, particularly as policy obstacles begin to diminish. European, Taiwanese, and South Korean benchmark stock indices also recorded highs, while U.S. index futures followed suit.

With gains led by the defense and aerospace sectors, the FTSE 100's significant diversification, limited artificial intelligence exposure, and strengths in the commodity-linked and banking sectors contributed to its notable performance. Furthermore, signs of a more accommodating Bank of England hint at potential sustained success despite recent slowdowns in UK housing prices.

(With inputs from agencies.)