The stock market hit a significant milestone today as the FTSE 100 index surpassed 10,000 points for the first time. In the early hours of trading post the new year break, the blue-chip index peaked at 10,046 points before experiencing a minor pullback.
Comprising the top 100 UK companies listed on the London Stock Exchange, the FTSE 100’s performance is crucial for both investors and individuals with pension investments. The index’s strong upward trend follows a notable 21.5% increase in 2025, driven by sectors such as precious metal mining, defense, and financial services.
Political uncertainties globally and sluggish growth in the UK economy have attracted investors to the stock market. Throughout the year, the FTSE 100 surpassed previous record highs multiple times, outperforming major European and US indices like France’s Cac 40 and New York’s S&P 500.
Dan Coatsworth, the markets head at AJ Bell, described the breach of the 10,000 level as a historic moment, making 2026 a significant year for the index. Chancellor Rachel Reeves expressed confidence in the UK economy, attributing the FTSE 100 milestone to the benefits of investing in UK shares over keeping money in banks.
Reeves recently announced changes to the cash ISA annual limit, aiming to encourage more stock market investments. Starting April 2027, individuals under 65 will be limited to a £12,000 cash ISA contribution annually, down from the current £20,000 limit. However, over-65s can still invest up to £20,000 in cash ISAs, maintaining an overall £20,000 ISA limit for combined cash and stocks and shares ISAs.