What's happened
As of mid-January 2026, the FTSE 100 has surpassed 10,000 for the first time, capping a 21.5% gain in 2025 driven by mining, defence, and financial sectors. This milestone coincides with heightened geopolitical tensions following the US capture of Venezuelan President Nicolás Maduro, which has spurred investor interest in Venezuelan debt and defence stocks, while oil prices face downward pressure.
What's behind the headline?
Market Resilience Amid Geopolitical Uncertainty
The FTSE 100's milestone of crossing 10,000 points underscores a robust UK market performance, driven by sectors less sensitive to domestic economic weakness, such as mining, defence, and financial services. This resilience contrasts with broader global uncertainties, particularly the US's aggressive stance in Venezuela.
Geopolitical Events Driving Sectoral Shifts
The US-led capture of Venezuelan President Nicolás Maduro has injected volatility into global markets, yet investors have largely absorbed the shock without panic. Instead, there is a clear rotation towards defence stocks and precious metals, reflecting expectations of increased military spending and a flight to safety.
Oil Market Dynamics and Investor Sentiment
Despite the geopolitical upheaval, oil prices have declined over the past year due to oversupply fears, exacerbated by Trump's moves in Venezuela and potential Greenland acquisition. This has pressured energy companies like BP and Shell, which report weaker trading and write-downs in green energy assets, signaling a strategic pivot back to fossil fuels.
Strategic Leadership Changes and Corporate Responses
BP's appointment of Meg O’Neill as CEO marks a significant leadership shift aimed at navigating these complex market conditions. The company’s write-downs and asset sales reflect a recalibration of its energy transition strategy amid volatile oil prices and geopolitical risks.
Investor Implications
For investors, the current environment demands balancing optimism in resilient sectors with caution over geopolitical risks and commodity price volatility. The FTSE 100's performance offers a compelling case for diversified exposure, while the evolving US-Venezuela situation and global energy dynamics warrant close monitoring.
What the papers say
The Guardian's Joanna Partridge highlights BP's $5bn write-down in green energy and its strategic refocus on fossil fuels under new CEO Meg O’Neill, noting the impact of weaker oil prices and trading performance. The Independent's Holly Williams echoes these points, emphasizing BP's debt reduction and leadership changes. Reuters and The Japan Times, through Alun John, provide context on the geopolitical tensions sparked by Trump's actions in Venezuela and ambitions regarding Greenland, noting investor unease and shifts towards gold and defence stocks. The NY Post's Charles Gasparino offers insight into investor behavior around Venezuelan debt post-Maduro's capture, illustrating a speculative but cautious optimism. Business Insider UK and The Independent report on the FTSE 100's record highs, driven by mining, defence, and retail sectors, despite geopolitical shocks. The Guardian and Sky News provide broader market context, underscoring the FTSE's strong 2025 performance and sectoral drivers. These sources collectively paint a picture of markets navigating geopolitical upheaval with sectoral rotation and strategic corporate adjustments.
How we got here
The FTSE 100's rise reflects a year of strong gains in sectors like mining, defence, and finance, despite global uncertainties. Meanwhile, US military action in Venezuela, including the capture of President Maduro, has intensified geopolitical tensions, influencing markets with increased demand for defence stocks and safe-haven assets like gold, amid concerns over oil supply and prices.
Go deeper
- How will BP's new CEO impact its energy strategy?
- What are the implications of Venezuela's political changes on oil markets?
- Why is the FTSE 100 outperforming despite global uncertainties?
Common question
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Why Did the FTSE 100 Perform So Well in 2025?
The FTSE 100's record-breaking year in 2025 has raised many questions. Despite UK economic and political uncertainties, the index surged by 21.5%, its best year since 2009. What factors drove this impressive growth? How does this compare to previous years? And what does it mean for UK investors? Below, we explore the key reasons behind the FTSE 100's remarkable performance and what it signals for the future.
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What's Happening in the News Today? Your Top Questions Answered
Stay informed with our quick roundup of today's biggest stories. From international conflicts to local events, we answer the questions you're probably asking about current news. Curious about global tensions, economic updates, or recent incidents? Keep reading for clear, concise answers to your most pressing questions.
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Why Did the FTSE Hit a Record High in 2026?
The FTSE 100 reaching a new high in 2026 has caught the attention of investors and market watchers alike. This remarkable performance raises questions about what drove the market to such heights and whether this trend can continue. In this page, we'll explore the key factors behind the record-breaking year, the sectors leading the charge, and what this means for the UK economy moving forward.
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What Are the Key Market Trends and Investment Opportunities in 2026?
As we step into 2026, investors are eager to understand where the markets are headed and which sectors offer the best opportunities. With the FTSE 100 reaching record highs and global markets showing resilience, it's crucial to know which areas are set to grow and what risks to watch out for. Below, we explore the main questions investors are asking about market trends, sector growth, and strategic focus for the year ahead.
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Why Are Global Stock Markets Hitting New Highs in 2026?
Stock markets around the world are reaching record highs in 2026, despite ongoing geopolitical tensions and economic uncertainties. Many investors are wondering what’s driving this rally and whether it’s sustainable. Below, we explore the key factors behind the market surge, including sector performance, political influences, and future outlooks.
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What Are the Biggest News Stories of Early 2026?
2026 has kicked off with a mix of soaring markets, geopolitical tensions, and regional conflicts. From record-breaking stock indices to tense clashes in Syria and major moves in the energy and commodities sectors, there's a lot happening that could impact your daily life and investments. Curious about what these stories mean for you? Below, we answer the most pressing questions about the top news of early 2026.
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Why Did the FTSE 100 Hit 10,000 in 2026?
In January 2026, the FTSE 100 reached a historic milestone by surpassing 10,000 points for the first time. This remarkable rise has sparked curiosity about what factors drove this growth, especially amid ongoing political turmoil in Venezuela. Investors and market watchers are asking: what does this mean for the UK economy, global markets, and specific sectors? Below, we explore the key reasons behind this milestone and what it signals for the future.
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What Are the Impacts of the US Capturing Maduro in Venezuela?
The recent US military operation in Venezuela, which resulted in the capture of President Nicolás Maduro, has sent shockwaves through global politics and markets. Many are asking what led to this bold move, how it affects international relations, and what the future holds for Venezuela. Below, we explore the key questions surrounding this significant event and its wider implications.
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What Do Recent Market and Political Changes Mean for Investors in 2026?
2026 has brought significant shifts in global markets and politics, from record-breaking stock indices to geopolitical tensions and trade disputes. Investors and everyday readers alike are asking what these developments mean for their finances and the world economy. Below, we explore key questions about the impact of these events and what to watch for in the coming months.
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What Does the FTSE 100 Crossing 10,000 Mean for Investors?
In January 2026, the FTSE 100 broke the 10,000 mark for the first time, marking a significant milestone for UK investors. This rise reflects strong performances in mining, defence, and financial sectors, but also occurs amid geopolitical tensions and global market shifts. Curious about what this means for your investments? Below, we answer key questions about this market milestone and its broader implications.
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Why Did the FTSE 100 Hit 10,000 in 2026?
The FTSE 100 reaching 10,000 for the first time in 2026 marks a significant milestone in the UK stock market. This surge has been driven by strong performances in sectors like mining, defence, and finance, amid ongoing geopolitical tensions. But what exactly caused this record high, and what does it mean for investors? Below, we explore the key factors behind this milestone and answer common questions about the current market landscape.
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How Do Political Crises Like Venezuela's Affect Global Markets?
Recent geopolitical upheavals, such as the US capture of Venezuelan President Nicolás Maduro, have significant impacts on global markets. Investors are closely watching these events, which influence sectors like defense, mining, and oil. Curious about how such crises ripple through the economy? Below, we explore key questions about market reactions, investment opportunities, and future outlooks amid political instability.
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