Britain's benchmark FTSE 100 stock index made history on Friday by briefly surging above the 10,000 point mark for the first time ever, capping its strongest annual performance in 16 years and signaling robust investor confidence in UK equities despite ongoing global economic uncertainties.
The capital's premier index, which features major corporations including energy giant BP, telecommunications firm Vodafone, and banking powerhouse HSBC, climbed more than one percent in early trading to reach an all-time high of 10,046.25 points. While the index ultimately closed the day slightly below this milestone at 9,931.38 points, the breakthrough moment marked a significant psychological barrier for European markets.
The record-breaking rally came on the heels of an exceptional 2025 for UK stocks. The FTSE 100 gained nearly 22 percent last year, its best performance since 2009, driven largely by cuts to British interest rates alongside reductions in borrowing costs by the US Federal Reserve as global inflation retreated from pandemic-era highs.
Defense stocks emerged as standout performers during the rally. Babcock International surged an remarkable 146.63 percent in 2025, while aerospace and defense giant Rolls-Royce gained 95.45 percent. BAE Systems shares increased by nearly 50 percent, reflecting heightened global defense spending amid ongoing geopolitical tensions.
Gold mining stocks also contributed significantly to the index's gains. Fresnillo shares rocketed an astonishing 436 percent over the past year as gold prices struck multiple record highs, benefiting from increased demand for safe-haven assets during periods of market uncertainty.
Market analysts described the milestone as historic for British markets. "This is a historic moment and already makes 2026 one of the most significant years for the blue-chip index since its launch in 1984," noted one senior market strategist. The move from 9,000 to 10,000 points represented the fastest 1,000-point increase in the index's history.
The strong start to 2026 reflects broader optimism about global economic conditions, with major stock markets worldwide posting gains as investors bet on continued central bank support and resilient corporate earnings. South Korea's Kospi index notably surged almost 76 percent in 2025, demonstrating the global nature of the equity rally.
Comments