The FTSE 100’s brief rise above the 10,000 level is a strong signal for UK markets, reflecting continued confidence in earnings resilience, attractive valuations and the growing appeal of UK stocks to international investors at a time when policy headwinds are beginning to ease. While the index’s recent outperformance may become more volatile in 2026, it remains mainly supported by globally diversified earnings, strong cash generation and the prospect of a more accommodative Bank of England, suggesting the trend is sustainable even if gains moderate compared to 2025’s advance of more than 20%. Key catalysts for UK stocks in 2026 include continued progress in inflation, measured interest rate cuts and continued improvements in productivity, while key risks focus on rising geopolitical tensions, an unexpected return of inflation, a sharp slowdown in global growth or a collapse in earnings delivery that could destabilize sentiment.
FTSE 100 hits record high at 10,052
