The UK stock market is enjoying a “momentous year”, with the FTSE 100 surpassing 9,000 points for the first time, demonstrating resilience despite global trade tensions triggered by Donald Trump’s tariff threats.
The milestone comes just two years after the index first broke the 8,000 mark, a far quicker climb than the eight years it took to move from 7,000 to 8,000.
So far in 2025, the FTSE 100 has gained 8.9%, outperforming the S&P 500’s 6.8% and the Nasdaq Composite’s 7.1%.
Dan Coatsworth, analyst at AJ Bell, said: “Outperforming the main US indices since January is a major achievement for the UK, and breaking through 9,000 cements that success. It should help dispel the idea that the UK market is dull or lacking in opportunity.
“The UK is home to world-leading companies across a range of sectors. While it may not rival the US in technology, it offers strong potential in financials, natural resources, healthcare and industrials—giving investors plenty of compelling options.”
FTSE 100 Surge Boosts UK Investors—But Doesn’t Reflect the Domestic Economy
This year’s rise in the FTSE 100 offers a welcome boost for those investing in London-listed companies through pensions or ISAs. However, analysts caution that the index’s strong performance doesn’t necessarily reflect the health of the UK economy.
Many of the FTSE 100’s largest constituents are global giants—such as AstraZeneca, HSBC, Shell, and Unilever—with limited exposure to domestic markets. It’s estimated that around 75% of the index’s total earnings are generated overseas, primarily in US dollars.
As a result, while the index’s climb past 9,000 points benefits investors, it offers little direct insight into the performance of the broader UK economy.
