Flying Footsie on target for finest begin to the 12 months since 1998 because it smashes by 10,800

The London stock market is enjoying its best start to the year for nearly three decades as the FTSE 100 closes in on the 11,000 mark.

On another bumper day for investors, the blue-chip index rose above 10,800 for the first time, closing up 125.82 points or 1.18 per cent at a record high of 10,806.41.

The latest rally took gains for the year so far 8.8 per cent, putting it on course for its best opening two months since 1998.

And analysis of Refinitiv data by the Daily Mail shows 20 blue-chip stocks – dubbed the ‘Tasty 20’ – have gained at least 50 per cent in the past 12 months.

The list is let by gold and silver miner Fresnillo, up 448 per cent, defence stocks including Rolls-Royce and BAE Systems and Footsie stalwarts including Barclays, Lloyds, GSK and British American Tobacco. 

The FTSE 100 has gained 8.8% so far this year and 43% since April 2025 when Donald Trump announced his ‘Liberation Day’ tariff blitz

Russ Mould, investment director at AJ Bell, said the Footsie is ‘changing its reputation from unloved to admired’ as it leaves Wall Street in its wake amid concerns over an AI-driven tech bubble.

The index is also benefiting from the weakness of sterling as 80 per cent of blue-chip revenues come from overseas – boosting profits when they are converted back into pounds.

Chris Beauchamp, chief market analyst at IG, said: ‘There seems no stopping the FTSE 100. Another week like this and the index will top 11,000, just weeks after it first crossed the magic 10,000 level.

‘It has the winning combination for investors right now – a lower valuation than pricey US markets, and key sectors driving that are much less vulnerable to AI-driven panic selloffs.

‘Mining, defence and banking have all yet to be touched by an AI competitor, while its pharma stocks provide further heft and dividend payments too. It might be smaller than Nvidia, but it continues to charm global investors.’

The FTSE 100 has now gained 43 per cent since in a remarkable turnaround since sinking as low as 7544 in April last year when Donald Trump unleashed his ‘Liberation Day’ tariff blitz on trading partners around the world. 

Richard Hunter, head of markets at Interactive Investor, said: ‘The next psychological milestone for the FTSE 100 would be a level of 11,000 which is just 2 per cent away.

‘At the current run rate this is a distinct possibility, with the primary index having become the star of the show on the international stage as the investment stars have aligned.’