New Age | London stocks hit record as 2026 kicks off with global gains
Stock markets rose Friday, the first trading day of 2026, with London’s benchmark FTSE 100 index reaching 10,000 points for the first time.
After indices smashed records in 2025, ending with double-digit annual gains, London continued the trend in early new year deals.
The capital’s top-tier index — featuring the likes of energy group BP, telecoms firm Vodafone and banking giant HSBC — gained more than one per cent to reach an all-time high of 10,046.25 points soon after the start of trading Friday.
It later cooled but was still showing a gain of 0.5 per cent compared with the close on Wednesday.
‘The FTSE 100 hit the 10,000 jackpot level immediately after rounding off a tremendous year for UK shares,’ noted Dan Coatsworth, head of markets at AJ Bell trading group.
The index climbed more than 21 per cent in 2025, the biggest gain for 16 years, helped in large part by cuts to British interest rates alongside reductions to borrowing costs by the US Federal Reserve as global inflation retreated.
Helping the FTSE 100 to its new record Friday was another solid gain to the share price of gold miner Fresnillo, whose stock rocketed 436 per cent last year as the precious metal’s price struck multiple record highs.
Paris and Frankfurt edged higher in late morning deals Friday after Hong Kong led Asian gains, closing up 2.8 per cent.
Overall in 2025, Hong Kong jumped 28 per cent, Tokyo won 26 per cent and Seoul soared 75 per cent.
Wall Street’s S&P added 16.4 per cent last year and the tech-rich Nasdaq 20.4 per cent, with the dollar weakening on US rate cuts and president Donald Trump’s war on tariffs.
However the dollar made a bright start to 2026, rising against the euro, yen and British pound.
Oil prices dipped, having lost nearly 20 per cent last year on an oversupplied market.
‘When it comes to the all important US economy, Wall Street is pricing in (that) growth will accelerate this year while inflation still moderates and interest rates get cut’ further, said Kyle Rodda at Australian brokerage Capital.com.
AI chip juggernaut Nvidia became the world’s first $5 trillion company in late 2025 as its market value soared on Wall Street.
The surge in the tech sector on vast amounts of cash pumped into artificial intelligence helped push stock markets to record highs last year, but concerns that valuations of AI stocks are too high gnawed at investors late in 2025.
In Asia on Friday, chip designer Biren Technologies soared as much as 119 per cent in the exchange’s first listing of the year.
It closed at HK$34.46, off its intra-day high of HK$42.88 but well up on its offer price of HK$19.60.
The Shanghai-based firm’s listing raised more than $700 million, suggesting that investor appetite for anything related to AI remains insatiable.
‘The industry is in a flourishing stage, with many firms striving for breakthroughs and significant growth potential,’ said Kenny Ng, a strategist at China Everbright Securities.
