FTSE100 closes above 10,000 for first time ever - where is it going now?

Mark Watson-Mitchell - 06.01.2026

Last night the FTSE100, the UK Equity Market's official barometer of performance, closed at 10,004.57, up 53.43 points on the day.

It had broken up to 10,046.30 on Intra Day dealings last Friday, but the close last night is considered the most important marker.

Jason Hollands, Managing Director of online investment platform Bestinvest by Evelyn Partners, stated that:

“The UK’s FTSE 100 index of blue-chip companies today closed above 10,000 points for the first time ever, having first tested this level in intra-day trading on Friday 2 January.

This a major symbolic milestone for a market that has been somewhat unloved in recent years.

While investor attention has been widely fixated on US equities where the market has been fuelled by AI excitement and become increasingly concentrated, Britain’s ‘Footsie’ enjoyed a barnstorming run last year. In price terms the Footsie surged an impressive ~21% in 2025, delivering even higher returns for investors once dividends are factored in.

This outpaced the rise from the USA’s bellwether S&P 500 Index, where currency losses on a weakening Dollar last year also shaved returns for UK-based investors.

The Footsie only has limited exposure to the red-hot technology sector, at around 3.3% of the index, which is often seen as its Achilles’ Heel.

Despite this, it has benefited from a tearaway year for aerospace and defence stocks which have gained from European rearmament.

Notable performers here include Babcock International, Rolls Royce and BAE Systems.

Banks, one of the biggest sectors in the index at over 14%, have also performed over the last 12 months and remain attractively valued.

UK companies have also been active in buying back their shares which is helping boost returns.

It’s a reminder that while game-changing technology is an exciting theme, investing in AI related stocks isn’t the only game in town, and it makes sense to have a portfolio that is diversified by regions and sectors.

The UK market shouldn’t be ignored in a portfolio and more recently we have been warming to both Europe and Japan.”

Bestinvest is an award-winning, digital investment platform and coaching service for people who choose to make their own investment decisions but with the support of tools, insights and qualified professionals.

The platform's top fund picks for UK equities include Artemis UK Select, Redwheel UK Equity Income and JPMorgan UK Equity Plus. European ideas on the platform’s Best Funds List are BlackRock European Dynamic, Fidelity European and Liontrust European Dynamic. Bestinvest’s preferred Japan funds are M&G Japan and JPM Japan.