If you are investment planning in Oswestry or Cheshire, you may be wondering if the stock market will offer good returns this year. The evidence so far has been encouraging.
In January, the FTSE 100 broke 10,000 points for the first time, outperforming the S&P 500 across the Atlantic. It followed a very good 2025 when the index recorded its best performance since 2009, following the global banking crisis. With blue chips doing well, international investors are swooping for UK equities.
A number of structural factors have strengthened the FTSE 100. The strongest drivers have been market sectors such as mining, precious metals, defence and banking. Copper prices have, for instance, recorded record highs so far in 2026. The FTSE 100 offers attractive dividend yields with many companies now offering over 4%.
The index has also benefited from the benign currency backdrop of a weak US dollar which has seen value-enticed investors seeking an alternative to US tech stocks. The FTSE is less exposed to tech currents, with just 3.5% listed in that sector compared to around a third of the S&P 500. The FTSE 100 is instead filled with more traditional stocks, which reflect the scale and proven business models of familiar brands. Whilst less spectacular than tech, they are solid and resolute, even during turbulent times.
The markets have also prospered from the Bank of England’s succession of interest rate cuts in 2025. This has meant more favourable financial conditions for equities, and particularly sensitive sectors such as banking, utilities and housebuilders.
