Investors who track London’s leading index are anticipating a new milestone in a year that has seen records repeatedly broken, despite economic uncertainty.
The FTSE 100 ended today’s session just a whisker short of 10,000 as it continues to outperform all the major US stock indices. It closed 112.45 points (1.15%) up at 9,899.6 having hit an intra-day record of 9912.85.
Rising unemployment has heightened speculation that next month will see a cut in interest rates which makes equities more attractive.
This fuelled buying in housebuilders such as Barratt Redrow, up 12p (3.09%) at 400.6p. It also saw the pound dip 0.3% to $1.312.
A number of companies continue to defy the gloom with positive results, including Vodafone which saw its shares climb 8.14% to 96.16p after the telecoms giant increased its full-year guidance and announced its first dividend increase since 2018.
Dan Coatsworth, head of markets at AJ Bell, said that after a historic year, “hitting 10,000 would be the cherry on top, proving to cynics that the UK market is not stuck in the mud.”
He added: “Chancellor Rachel Reeves would love the FTSE 100 to hit the magic 10,000 level before the Budget, so she can use the achievement to help back her campaign to get more people invested in UK assets.
“There needs to be some good news hook for the Budget, as all signs point towards more ‘difficult decisions’ by the Chancellor on the day.”
Why has the FTSE 100 done well this year?
Coatsworth explains that investors have faced considerable uncertainty this year and many have looked away from the US for opportunities, with the FTSE 100 offering plenty of defensive-style companies.
“When everything looks gloomy or chaotic, such as in the depths of the Liberation Day fallout earlier this year, investors often seek solace in companies whose goods and services should be in demand no matter what’s happening in the world,” he said.
“For example, we all need to pay insurance or water bills, or nicotine addicts will still buy cigarettes or vapes, and the FTSE 100 has plenty of these companies on offer.
“Other tailwinds for the FTSE 100 this year include the sharp rise in gold which has benefited the likes of Fresnillo and Endeavour Mining. A push for more governments to spend on defence has also improved the earnings prospects for contractors such as Babcock, another sector well-represented on the UK stock market.
“Lots of people have criticised the UK for being an old economy market, full of boring companies in the banking and natural resources sector. Yes, it lacks the excitement of go-go-growth stocks omnipresent in the US, but boring can also be beautiful when it comes to investing.
“The UK is a rich hunting ground for dividends, and it is also full of companies that have slow but steady growth and which are underappreciated engines for wealth creation.”
How long did it take to hit previous 1,000 increments?
It’s only been 119 days since the FTSE 100 hit 9,000, so exceeding 10,000 before the end of 2025 would make it a record breaker. Previously, the fastest jump in blocks of 1,000 happened when the FTSE 100 went from 5,000 to 6,000 which took 229 days in the late 1990s.
The average period to advance from a straight 1,000 level to the next one is 1,896 days, based on records since the FTSE 100 launched in 1984.
The longest period was 6,206 days between hitting 6,000 in March 1998 and 7,000 in 2015. However, that period included the 2007-09 global financial crisis.
| How long it took for the FTSE 100 to hit each 1,000 milestone | |||||
| Index level | First day to hit milestone | Days between intervals | |||
| 1,000 | 03/01/1984 | ||||
| 2,000 | 04/03/1987 | 1,156 | |||
| 3,000 | 11/08/1993 | 2,352 | |||
| 4,000 | 02/10/1996 | 1,148 | |||
| 5,000 | 06/08/1997 | 308 | |||
| 6,000 | 23/03/1998 | 229 | |||
| 7,000 | 20/03/2015 | 6,206 | |||
| 8,000 | 15/02/2023 | 2,889 | |||
| 9,000 | 15/07/2025 | 881 | |||
| 10,000 | |||||
| Source: AJ Bell, LSEG. Based on price highs per day since FTSE 100 launch (03/01/1984) | |||||
What does the Budget mean for the FTSE 100?
Approximately three-quarters of the FTSE 100 generates revenue overseas, which means the index is less of a play on the UK economy than people might think. However, investor sentiment is still guided by what’s happening on these shores.
“The Budget will be the key test for the market,” says Coatsworth. “Anything deemed negative for the economy could weigh on shares in the retail, banking, construction, housebuilding and property sectors.
“While doom and gloom might cloud the outlook for businesses and consumers, it could also strengthen the argument for more interest rate cuts and that is traditionally positive for stock markets. It comes down to the details in the Budget as to how markets might react.”
Top performers year to date:
- Fresnillo +288%
- Airtel Africa +171%
- Babcock +137%
- Endeavour Mining +126%
- Rolls-Royce +106%
- Lloyds +78%
- Antofagasta +76%
- Prudential +72%
- Standard Chartered +69%
- Barclays +62%
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