Sentiment shifts on UK equities as FTSE 100 hits 10,000 record level

The FTSE 100 has begun 2026 by smashing through the 10,000 mark for the first time, a landmark moment that would have seemed unlikely just a few years ago.

After long being written off as unloved and ex-growth, the UK’s flagship index has staged a powerful comeback in 2025, buoyed by banks, miners and defence stocks, improving sentiment and still-compelling valuations.

For advisers, the milestone is about more than headlines: it sharpens the debate around UK equity allocations, income opportunities and global diversification at a discount.

Below, leading investment experts have told us what they believe this significant 10,000 milestone means for client portfolios in the year ahead.

Jemma Slingo, Pensions and Investment Specialist at Fidelity International, comments on the FTSE 100 reaching 10,000 points: “The FTSE 100 breaking through 10,000 on the first trading day of 2026 is a historic moment for UK markets and a powerful signal of how far sentiment has shifted over the past year. After years in the shadows, London’s so-called ‘dinosaur’ index has roared back to life, driven by strength in banking, mining and defence stocks.

“Higher interest rates have boosted banks after years of underperformance, and defence companies have benefited from rising global military spending. Meanwhile, miners have benefited from the soaring price of precious metals. Gold rocketed in 2025 – as did silver – pushing miners such as Fresnillo and Endeavour Mining to fresh highs. Silver is seldom on the radar of small investors but a more than 130% price rise in 2025 – most of it in the second half of the year – has grabbed their attention.

“Despite the milestone, valuations remain attractive – the FTSE 100 still trades at a discount to the US and Europe, even as sentiment towards UK companies improves. With around a quarter of FTSE 100 revenues coming from the US, investors are gaining exposure to global growth at a discount – and with a healthy dividend yield to match.

“For those looking to invest in the UK market, there are plenty of options. Low-cost index trackers such as the iShares Core FTSE 100 ETF offer straightforward exposure, while actively managed funds like the FTF ClearBridge UK Equity Income – part of Fidelity’s Select 50 list – aim to deliver income and long-term growth through holdings such as Unilever, Shell and AstraZeneca.

“Other active funds on the Select 50 include the Fidelity Special Situations Fund. For investors seeking income, diversification and long-term opportunity, the UK market still has much to offer.”

Rebecca Maclean, Investment Director, Aberdeen Investments and co-Manager, Dunedin Income Growth investment trust at Aberdeen said;

“2026 starts with a fizz as the FTSE 100 bursts to an all‑time high on 2 January, briefly pushing through the 10,000‑point mark. It follows a strong 2025, when the UK market delivered a 22% gain, led by its largest companies. An impressive return for a region many investors continue to overlook. Notably, last year saw global equity leadership broaden, with almost every major market outpacing the US, as investors diversified their exposure.

Looking ahead, the UK market is expected to deliver solid earnings growth in 2026 and remains one of the cheapest equity markets globally, creating fertile ground for future returns. For those looking beneath the fizz, UK mid‑caps lagged last year’s rally and could present a compelling place for investors to focus next.”

Commenting on the FTSE 100 reaching 10,000 for the first time, Chris Metcalfe, CIO and Managing Director at IBOSS, part of the Kingswood Group, said: “We remain positive on the UK, especially the FTSE 100 even after hitting the 10,000 milestone. Despite several poorly received budgets and changes to legislation in the few years, the UK remains an excellent place to do business, underpinned by strengths ranging from a robust corporate law framework to world-leading skills in life sciences and professional services.

“The UK market as a whole remains relatively cheap especially to parts of the US and we expect to continue our relative overweight to the UK market. Unlike our American cousins, we are notoriously bad at talking ourselves up – but the performance of UK plc across multiple fields speaks for itself. We expect even greater things to come, as the US is no longer seen as the best automatic choice for investors and a continuation of themes that played out so strongly in 2025.”

Bola Onifade, portfolio manager at J.P. Morgan Personal Investing, said: “The UK’s flagship stock index, the FTSE 100, has started the new year with a bang and crossed the historic 10,000 points milestone for the first time.

“This will be a huge boost to sentiment towards UK stocks and for many in the City of London, who have lamented the FTSE 100’s performance in recent years when the index has suffered amid de-listings and lower exposure to the AI and technology boom. While traders and investors may have been envious of US markets recently, the FTSE 100 performed strongly in 2025, rewarding investors with a 25.74% gain over the course of the year.    

“Some investors may see the 10,000 points milestone as the peak at the end of a strong year for the index, while others will be optimistic this a positive sign of things to come. New research from J.P. Morgan Personal Investing found that nearly three quarters (72%) of UK investors are considering investing in domestic stocks in 2026¹, showing that UK shares are back in favour.”