The UK’s FTSE 100 share index crossed 10,000 points for the first time on Friday. It hit a high of 10,046 before easing slightly later in the day. This milestone marks a strong year for the index, which rose 21.5% during 2025. Leading the gains on Friday were engineering giant Rolls-Royce, aerospace company Melrose, and precious metals producer Fresnillo, each up about 3%. The final five days of trading in the year and the first two days of the new year are called the "Santa Claus rally period," when share prices typically rise amid low trading volumes. Dan Coatsworth, head of markets at AJ Bell, said, "The FTSE 100 hit the 10,000 jackpot level immediately after rounding off a tremendous year for UK shares." He added, "Breaking through the 10,000 level is the best new year’s present chancellor Rachel Reeves could want. She has been banging the drum about the merits of investing over parking cash in the bank, and the FTSE 100’s achievements just go to show what’s possible when buying UK shares." The FTSE 100's gain also challenges those who think the UK market is stagnant and proves that the US is not the only hotspot for investment profits. The rally in London helped push the pan-European Stoxx 600 index to a record high, led by mining and energy sectors. Global markets gained on optimism about central banks cutting interest rates, the rise of artificial intelligence, and a good economic environment. Despite a mid-year scare linked to tariffs by Donald Trump, markets recovered as trade tensions eased. The FTSE 100, created in 1984 starting at 1,000 points, includes leading UK companies like Rio Tinto, BP, Shell, AstraZeneca, BAE Systems, Barclays, Unilever, Tesco, and more. Fresnillo was the best performing stock last year, soaring about 450% with gold and silver prices rising. Defence firms like Babcock and Rolls-Royce doubled in value. Investor strategist Neil Wilson noted that President Trump's push for increased defence spending changed European security views, boosting defence stocks. Analysts expect global markets to rise in 2026, despite concerns that some AI stocks may be overpriced. A recent poll by eToro found that 53% of UK retail investors are confident the bull market will continue next year.