FTSE 100 hits 10,000 and may be a symbolic milestone

The FTSE 100 has reached 10,000; the rise reflects easing inflation, lower interest-rate expectations and stronger bank performance.

The FTSE 100 has reached the 10,000 mark, a milestone widely described as psychological rather than a fundamental turning point. The index's rise has followed easing inflation, falling interest-rate expectations and a recovery in risk appetite. The FTSE 100 is dominated by global firms in energy, mining, consumer goods and financials, and roughly 70% of revenues are earned overseas. Banks have been a notable growth driver over the past two years, occupying several of the index's largest positions. Key points: - The FTSE 100 has reached the 10,000 level. - The rise has been supported by easing inflation, lower interest-rate expectations and improved risk appetite. - The index is dominated by energy, mining, consumer goods and financials, with roughly 70% of revenues generated overseas. - Banks have become major contributors and now appear among several of the index's largest companies (2nd, 9th, 11th, 14th and 18th positions). - US equity markets are deeper and more liquid, while UK equities have faced outflows in recent years, contributing to a lower relative valuation for UK stocks versus US peers. - Melrose Industries (LSE:MRO) is cited as an attractive and often overlooked stock; through GKN Aerospace it is a Tier 1, sole-source supplier of critical engine and structural components to major manufacturers. Summary: The move to 10,000 is mainly symbolic but signals stronger market sentiment and higher valuations for some UK companies, and investors exposed to the index will have seen gains. The change in how markets value British firms is notable for capital-market activity, and further effects on listings or market structure are undetermined at this time.