January 2, 2026, 03:53 ET
- The FTSE 100 hit the 10,000 level for the first time on Friday after a near-22% rise in 2025
- Miners, defence firms and banks led gains as the index beat the STOXX 600 and S&P 500 last year
- LSEG data showed the benchmark logged 41 record closes in 2025 and ended the year at 9,931
Britain’s FTSE 100 hit the 10,000 level for the first time on Friday, capping a surge that left the index up nearly 22% in 2025, its strongest annual showing since 2009. The benchmark beat both the pan-European STOXX 600 and the U.S. S&P 500 last year, while the more domestically focused FTSE 250 rose about 9%. Miners such as Fresnillo, defence contractors including Babcock and Rolls-Royce and banks led by Lloyds powered gains in a market with limited exposure to artificial intelligence (AI) stocks. Reuters
The milestone follows a year in which the FTSE 100 logged 41 all-time high closes, with the most recent record on Dec. 30, data from London Stock Exchange Group (LSEG) showed. The index — a benchmark of the 100 biggest companies on the London Stock Exchange, heavy in banks, miners and oil and gas — finished 2025 at 9,931 points, up 21.5% from the start. Germany’s DAX climbed 21.5% and the S&P 500 gained 17% in 2025, while the pan-European STOXX 600 was up nearly 16%, Sky News reported. Sky News
Investors have pointed to the index’s sector mix and a push by companies to return cash to shareholders. FTSE 100 members make about three-quarters of their combined revenues overseas, helping insulate the benchmark from the UK economy, Guardian columnist Nils Pratley wrote. Sue Noffke, head of UK equities at Schroders, said, “The UK stock market has moved on from being the dividend yield capital of the world,” arguing that share buybacks now play a larger role. The Guardian
The FTSE 100 is often described as a blue-chip index, meaning it is dominated by large, established companies. It is weighted by market value, so the biggest firms have the most influence on daily moves.
That structure makes currency moves important. When a company earns much of its revenue abroad but reports in pounds, sterling swings can amplify or reduce those overseas earnings when translated back into UK currency.
Share buybacks are one way companies deploy surplus cash. In a buyback, a company repurchases its own shares, reducing the share count and often boosting earnings per share.
The rally also underlined how different London looks from markets dominated by technology. The FTSE’s heavy exposure to commodities, defence and financials means it can rise on different drivers than an AI-led tech boom.
That contrast showed up in year-end comparisons. U.S. gains leaned heavily on a handful of mega-cap tech names, while London’s gains were spread across sectors more tied to metal prices, defence demand and interest-rate settings.
For UK investors, the gap between the internationally focused FTSE 100 and the more UK-sensitive FTSE 250 has remained a key signal. A stronger run in the large-cap index can reflect global revenue streams more than domestic conditions.
The 10,000 milestone also arrives as fund managers reset portfolios for the new year. Investors will be watching whether the same mix of commodities, defence-related demand and bank profitability keeps underpinning returns.
