FTSE 100 hits new high above 10,100 in record-breaking start to the year

The London stock market continued its record-breaking start to the year as the FTSE 100 raced to another new high.

On a bumper day for savers with money tied up in shares through their pensions, Isas and other investments, the blue-chip index jumped 1.2 per cent or 118.16 points to 10,122.73.

It came just a day after the Footsie closed above 10,000 for the first time and was the biggest one-day rise since July.

The index has gained 2 per cent in the first three trading sessions of 2026 having risen more than 20 per cent in 2025 – its best year since 2009.

Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: ‘Global equities are on the front foot, with markets largely brushing aside the uncertainty stirred up by US moves in Venezuela.’

Danni Hewson, head of financial analysis at AJ Bell, added: ‘Confidence is easy to knock, hard to rebuild, and a powerful force when it comes to market performance. Currently London’s blue-chip index is surfing a wave of investor optimism, with the FTSE 100 closing at another fresh record high.’  

Defence stocks have risen sharply so far this year amid mounting geopolitical tensions in the wake of the US attack on Venezuela.

Babcock International is up 12 per cent, BAE Systems has risen 10 per cent and Rolls-Royce has added 8 per cent since New Year.

Miners have also made healthy gains on the back of soaring commodity prices with gold and silver trading close to record highs as investors fretting about the outlook pile into so-called ‘safe havens’.

Meanwhile, the price of copper has hit a record high above $13,000 a tonne amid fears Donald Trump will introduce tariffs on the metal. That has led to huge shipments of copper to the US in a move that could leave the rest of the world short – driving up the price.

Veteran City commentator David Buik hailed a ‘great start to the year for investors’. 

He said: ‘Despite global geopolitical issues the FTSE 100 has bounced out of the traps with a bang this week. Investors appear to have an insatiable appetite to back the truck up understandably for defence, banking and the mining sector, which could provide the basis for further gains in 2026.’

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Sentiment in London was also boosted by a bumper Christmas trading update from Next.

On Wall Street, the Dow Jones Industrial Average has also scaled record highs, and now has the 50,000 in sight for the first time, while Nasdaq and S&P 500 are close to recent peaks.

Chris Beauchamp, chief market analyst at investing and trading platform IG, said: ‘If the Western alliance is about to fracture, it doesn’t appear to worry stocks on either side of the Atlantic.

‘Worries about that and high stock valuations have failed to halt the rally, with bubble fears having been left behind in 2025 for the moment.

‘Earnings estimates for the coming season have remained robust, pointing towards optimism among investors, while a new record for stock market breadth shows that the rally remains broad-based.’