FTSE 100 passes 9,000 points for first time
The FTSE 100 hit another all-time high on Tuesday, sailing past the 9,000-point barrier for the first time ever despite continued uncertainty around tariffs acting as anchor on other major stock markets.
London’s blue-chip equities index hit 9,016.98 points in early trades, taking its overall gains for the year up 10.3 per cent.
Its constituents have outperformed blue-chip indexes across much of the developed world this year, including New York’s S&P 500, Paris’s Cac 40, and the pan-European Stoxx 600.
Only the Dax – Frankfurt’s premier index – has beaten London stocks in 2025, thanks to a major borrowing-fuelled fiscal stimulus unveiled by newly installed Chancellor Friederich Merz.
The FTSE 100’s 9,000-point milestone caps a recent string of all-time highs in London markets. UK-listed equities have benefited from a growing ‘safe haven’ status as trade tensions across other major economies persist.
Donald Trump’s capricious trade policies have continued to act as a headwind to other major bourses, as uncertainty around the level of tariffs weighed on investor sentiment.
‘Momentous’ year for the FTSE
European and US blue-chip indexes have stuttered as officials in two major economies have struggled to reach a trade agreement since the US President unveiled his so-called reciprocal tariffs in April.
On Monday, the EU’s trade commissioner warned there remained a “big gap” in negotiations despite the deadline for talks having been set for August.
But ever since the UK became the first country to sign a trade deal with Washington in May, London stocks have largely escaped any major oscillations, rising nearly five per cent in two months.
Dan Coatsworth, investment analyst at AJ Bell, hailed 2025 as a “momentous year” for the FTSE, and the 9,000 milestone represented a “big tick” for London despite downbeat sentiment having plagued UK markets in recent years.
“It took eight years for the FTSE 100 to go from 7,000 to 8,000, yet only two years to break through 9,000,” he added. “That suggests the market is shaking off its unloved reputation and more investors like what’s on the menu.”
FTSE benefiting from defence boom
Market commentators also pointed to the spread of constituents in the FTSE, which is dominated by miners, energy firms and pharmaceutical giants, which means London’s blue-chip index tends to fair especially well during times of geopolitical and economic uncertainty.
John Moore, wealth manager at RBC Brewin Dolphin, said: “While the index’s composition had been a brake on its progress compared to other markets, now it is providing a tailwind, with strong earnings momentum in the banking and defence sectors, in particular, supported by the likes of some of the larger operators in other industries such as Next, Tesco, and National Grid.”
A long telegraphed boost to defence spending among western countries and rocketing precious metals prices have meant defence firms and miners make up the index’s the five biggest risers. Shares in London-listed miners Fresnillo and Endeavour have risen by 148 per cent and 60 per cent respectively since the start of the year.
And defence giants like Babcock, BAE Systems and Rolls-Royce – whose share price was also boosted after it won a landmark government nuclear contract – have all made gains of at least 60 per cent over 2025.
Moore added: “Finally, the UK offers relative political stability compared to other parts of the world at present. While there may be tax increases to come, which was part of the reason for the sell-off of the pound in early June, the government has a clear mandate and tenure for the next few years. That compares favourably to other parts of Europe, even, where coalition governments are having a tough time.”