Stock Market Trends on the First Trading Day of 2026

On the first trading day of 2026, stock markets generally observed an upward trend. Notably, London’s FTSE 100 index hit the significant milestone of 10,000 points for the first time.

Despite already breaking records in 2025, where it closed with impressive double-digit gains, London maintained its pattern of strong early-year trading.

The Tokyo index, encompassing major companies like BP, Vodafone, and HSBC, also made strides, climbing over 1% in the initial trading hours to reach a peak of 10,046.25 points.

Eventually, although it retraced some of its gains, the index closed up 0.2%, marking a new record in closing prices.

Dan Coatsworth, who leads Markets at AJ Bell Trading Group, remarked on the FTSE 100’s achievement: “The index reaching the 10,000 mark comes on the heels of a remarkable year for UK shares.”

In 2025, the FTSE 100 increased by more than 21%, the largest rise in 16 years. This surge was largely attributed to lower interest rates in the UK, alongside reduced borrowing costs from the US Federal Reserve as global inflation eases.

A significant factor in Friday’s record for the FTSE was the impressive 436% surge in the share price of gold mining firm Fresnillo, driven by soaring precious metal prices throughout the previous year.

Meanwhile, in Asia, Hong Kong led the gains, with both Paris and Frankfurt also rising, closing 2.8% higher.

When Wall Street opened, the tech-heavy Nasdaq Composite Index initially rose by 1%, although it later pulled back during morning trading.

Patrick O’Hare, an analyst at Briefing.com, noted, “AI-related stocks are at the forefront of strength in global markets today, particularly following news of Baidu’s chip unit filing for an IPO in Hong Kong.”

In a notable development, shares of Chinese chip design firm Viren Technologies skyrocketed 119% on its first trading day on the Hong Kong Stock Exchange, closing at HK$34.46—well above its initial offering of HK$19.60, even though it was below the day’s high of HK$42.88.

The Shanghai-based company’s public offering raised over $700 million, indicating that interest in AI remains robust among investors.

Kenny Ng, a strategist at China Everbright Securities, commented, “The industry is experiencing a thriving phase, with many companies seeking breakthroughs and notable growth opportunities.”

The tech sector’s boom, driven by significant investment in artificial intelligence, propelled stock markets to new highs last year, leading AI chip leader Nvidia to become the world’s first company valued at $5 trillion.

However, it’s worth mentioning that worries regarding overvaluation of AI stocks lingered, casting a shadow over investor sentiment late in 2025.

Referring to the current market dynamics, O’Hare suggested that recent developments should offer reassurance to investors concerned about a potential stagnation or downturn in AI investments.

In contrast, Tesla shares dipped by 1.3% after announcing a year-over-year decline in sales, leading to its loss of the title as the world’s largest electric vehicle manufacturer to BYD.

Additionally, oil prices experienced a decline, having fallen nearly 20% in the previous year due to oversupply in the market.

Main Market Figures

As of around 16:30 GMT:

• New York – Dow: up 0.3% to 48,221.35 points
• New York – S&P 500: flat at 6,844.39
• New York – Nasdaq Composite: down 0.2% to 23,202.60
• London – FTSE 100: up 0.2% to 9,951.14 (close)
• Paris – CAC 40: up 0.6% to 8,195.21 (close)
• Frankfurt – DAX: up 0.2% to 24,539.34 (close)
• Hong Kong Hang Seng Index: 26,338.47 (closing price), up 2.8%
• Shanghai – Market closed for public holiday
• Tokyo – Market closed for public holiday
• EUR/USD: down to $1.1748 from $1.1750 on Wednesday
• GBP/USD: up from $1.3478 to $1.3494
• Dollar/Yen: unchanged at 156.66 yen
• EUR/GBP: down from 87.18p to 87.0p
• Brent crude oil: down 1.1% to $60.16 per barrel
• West Texas Intermediate: down 1.2% to $56.75 per barrel