- FTSE 100 on verge of hitting the 10,000 level for the first time
- It would be a symbolic moment for the market and Chancellor Rachel Reeves
- Hitting the 10,000 level this year would represent the fastest rise between 1,000 intervals ever
- Reasons why the UK market has done well this year
Dan Coatsworth, head of markets at AJ Bell, comments:
“The FTSE 100 is within a whisker of hitting 10,000 and it could only be a matter of days or hours before reaching this triumphant level. At 9,863 at the time of writing, the index only needs to go up a further 1.4% to reach the goal. That’s what you might expect from a good day on the market, or a couple of reasonable days.
“It’s been a historic year for the UK as the FTSE 100 has outperformed all the major US stock indices. Hitting 10,000 would be the cherry on top, proving to cynics that the UK market is not stuck in the mud.
“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?
“Investors have faced considerable uncertainty this year and many have looked away from the US for opportunities. They’ve focused on cheaper areas of the market, of which the UK is one. We’ve seen increased interest from foreign investors looking to diversify their holdings and the FTSE 100 has also shone during the more tumultuous periods thanks to its plethora 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. 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 90s.”
“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. Admittedly, that period included a global financial crisis, so it was unusual times.”
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. 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%
Source: AJ Bell, Sharescope. Total return 1 Jan to 11 Nov 2025 (share price gains and dividends).