Ending the year with a stunning 66% gain, gold prices experienced their best annual performance since 1979, holding solid support above $4,300 an ounce. 

With the precious metal seeing its third consecutive year of gains, one market strategist suggests there is significant potential for the unprecedented rally to continue into the new year, signaling a “tectonic shift in global financial markets,” according to Chantelle Schieven, Head of Research at Capitalight Research.

In an interview with Kitco News, Schieven explained her tectonic plate analogy by saying that although the plates in Earth’s mantle move extremely slowly, there can be an extremely explosive moment. 

Gold’s explosive shift

She added that 2025 represents that explosive shift that has potentially changed the financial market landscape.

Despite increasing worries that the year’s gold rally has led the market into significantly overbought territory, Schieven cautioned investors not to mistake its current high valuation for an end to the uptrend.

She said:

Even if gold is in bubble territory, that doesn’t mean it’s going down next year — or anytime soon.

Central banks, aggressively accumulating gold reserves since 2022, are projected to remain a significant force in the market, adding value for investors through 2026, according to Schieven. 

This consistent demand from the official sector provides a price floor that was absent in earlier market cycles.

Given the current market conditions, she projected that prices could “easily rise to $5,000” an ounce in the upcoming year.

Although central bank purchases will continue to be a significant support for the gold market, Schieven anticipates that investment demand will be the primary factor driving prices up to 2026.

Despite appearing to be at a high point, gold is not excessively speculative (“frothy”), according to Schieven.

She added that gold is still underrepresented in investor portfolios, especially considering the current macro risks.

Lingering uncertainty: The Federal Reserve and the challenge of inflation

The Federal Reserve concluded its last monetary policy meeting with a generally positive outlook on the economy and a projection for inflation to gradually return to its target level. 

Despite this optimism, Schieven expressed doubt that inflationary pressures would dissipate as rapidly as the Fed anticipates. 

She argues that fundamental structural factors—specifically deglobalisation, increased trade fragmentation, and sustained underinvestment in commodities—are inherently inflationary forces that will persist.

Higher inflation, according to Schieven, makes the traditional safe-haven role of bonds more complex. 

Consequently, investors who have experienced negative real returns are increasingly seeing gold not just as a speculative hedge but as a crucial portfolio diversifier.

The Fed is optimistically forecasting — on a hope and a prayer — that inflation comes down.

Bonds are no longer perceived as a reliably safe investment, particularly if inflation proves more persistent than central bankers anticipate, Schieven said. 

For investors who believe inflation will remain elevated, purchasing bonds currently may not be a favorable decision, she added.

Schieven also highlighted subtle yet significant changes in Fed policy, such as balance-sheet adjustments aimed at capping bond yields. 

While these steps might offer a temporary solution, they do little to rebuild faith in long-term monetary stability—a factor that further boosts the appeal of gold.

Schieven maintains a bullish perspective, suggesting that $5,000 is a feasible goal for the upcoming year. She views this target as potentially just another short-term milestone within a broader, extended upward trend. 

While the long-term trend remains positive, Schieven anticipates that relative volatility will be high, leading to constructive and healthy market corrections.

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Investment bankers are looking to 2026 as a potential turning point for London’s struggling initial public offering (IPO) market, betting that a small number of large, high-profile listings could help restore confidence after another disappointing year for new listings.

Hopes of a revival in 2025 faded as market volatility linked to US President Donald Trump’s tariff policies eroded boardroom confidence globally.

Several companies paused or abandoned listing plans, while others, including fintech group Wise, shifted their primary listings to New York.

The slowdown intensified concerns over the long-term competitiveness of the London Stock Exchange (LSE).

A difficult backdrop for London IPOs

The scale of London’s challenges was underscored by its weak fundraising performance.

In the first nine months of 2025, the LSE raised less money from new listings than some smaller international exchanges, reflecting a lack of sizeable IPOs.

Although sentiment improved slightly toward the end of the year, overall activity remained muted.

These included listings from British bank Shawbrook, LED face mask maker Beauty Tech, and tinned tuna seller Princes Group.

Data centre developer Fermi and industrial group Metlen opted for dual listings, while the Magnum Ice Cream Company, spun out of Unilever, chose Amsterdam as its primary venue while retaining a UK listing.

In total, there were 22 London IPOs in 2025, raising £2.1bn, according to LSE data to December 22.

That marked an improvement on 2024, when 16 IPOs raised £766mn, but activity remained well below historical norms.

Advisers argue that London’s problem has been a lack of breadth and depth in supply.

Richard Fagan, head of origination at Shore Capital, said in a FT report that he expects more high-quality listings and favourable pricing conditions for sellers in 2026.

Visma and the search for a catalyst

Bankers believe a successful large IPO could act as a catalyst, encouraging other companies to follow.

One of the most closely watched candidates is Visma, the Norwegian software group backed by Hg Capital, which is considering a listing valued at around €19 billion as early as the first half of 2026.

Visma has chosen London over Amsterdam, a decision advisers say would be symbolic for the UK market.

The deal would test whether recent regulatory reforms and changes to index rules—such as allowing euro-reporting companies to join the FTSE 100 are making London more attractive.

Charlie Walker, deputy chief executive of the LSE, said that before the recent reforms, the listing rules had acted as obstacles to new listings, with different provisions posing challenges for different companies rather than a single, clear barrier.

Beyond Visma, advisers are tracking a long list of potential IPO candidates across fintech, insurance, and other sectors, though competition from New York remains intense.

Fintech, consumer, and overseas contenders

Several UK-based fintechs have been linked to IPOs, but many remain undecided on timing and venue.

Revolut is widely expected to stay private beyond 2026.

Santander-owned payments group Ebury has paused a London listing process but could revisit it, while Monzo’s plans have been complicated by management changes and shareholder tensions, pushing any listing into late 2026 or beyond.

Starling Bank is weighing a debut but may opt for a dual New York and London listing.

Other potential candidates include credit checker ClearScore, payments firm Zilch, and payments reader group SumUp, though many are still at an early stage.

In insurance, broker Howden is considering a London listing that could value it at about £23bn, though recent US acquisitions could tilt it toward New York.

Cyber insurance group CFC is working on a potential £5bn listing.

Overseas groups are also in focus.

CK Hutchison is considering listings for its AS Watson health and beauty business and its telecoms unit, which includes the Three mobile brand.

London is seen as a stronger contender for the telecoms listing.

Elsewhere, vet chain IVC Evidensia, bookseller Waterstones, travel firm LoveHolidays, Autoglass owner Belron, and Uzbek miner Navoi Mining and Metallurgical Company are among those weighing London debuts.

Bankers argue that if a handful of these deals succeed, they could help restore momentum to a market that has struggled to compete globally, making 2026 a critical year for the City’s IPO ambitions.



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China’s tech story was full of unexpected resilience in 2025.

The year began with predictions of stagnation and ended with record exports, headline-grabbing AI breakthroughs, and a triumphant New Year’s speech from Xi Jinping.

In official telling, China cracked the code on artificial intelligence, broke through chip bottlenecks, and proved that Western pressure had failed.

And with Xi hosting a celebration, it feels as if China is winning the tech race already.

A year that rewrote expectations

At the start of 2025, China’s tech outlook looked bleak. US export controls were tighter, foreign capital was scarce, and the property slump showed no sign of easing, and deflation dragged on profits.

By December, the narrative had flipped. China’s trade surplus crossed $1 trillion. Manufacturing exports rose even as shipments to the US fell sharply.

Official data showed factory activity returning to expansion in December, with the purchasing managers’ index at 50.1 after nine months below that line.

However, this rebound was not broad-based, but rather narrow and intentional.

The government leaned hard into industrial policy. Credit, subsidies, and procurement flowed to sectors linked to automation, electric vehicles, chips, and defense.

Consumption lagged behind, and investment outside state-backed areas stayed weak. The recovery was real, but it ran on a specific engine.

AI worked because it stayed close to factories

China’s strongest tech result in 2025 came from applied artificial intelligence.

While US firms chased larger models and higher benchmarks, Chinese firms focused on cost, speed, and deployment.

The goal was not to build the smartest system in the world, but to lower unit costs in manufacturing and logistics.

And that approach paid off. AI-driven automation spread across car plants, electronics factories, and ports.

“Dark factories” with minimal human labor became more common.

Design cycles shortened, inventory turnover improved, and these gains showed up in exports, not in consumer apps or ad revenue.

The symbol of this approach was DeepSeek. Its low-cost model stunned Silicon Valley early in the year by showing how far efficiency could go under hardware limits.

That event alone caused NVIDIA’s market cap to shed almost $600 billion within a single day.

The takeaway was that Chinese teams learned to do more with fewer chips.

Chips improved, but the ceiling stayed in place

Semiconductors were the centerpiece of Xi’s victory lap, and China did make progress.

Domestic chipmakers raised large sums through IPOs. Output rose in mature nodes. Memory and packaging have advanced. System-level engineering has improved, especially in AI servers designed around constrained hardware.

China’s tech-heavy Star 50 index has significantly outperformed the country’s main stock market index.

But the core constraint did not disappear. Advanced lithography tools remained out of reach. Leading-edge logic stayed behind global frontiers.

Although China did narrow the gaps in areas where scale and engineering depth matter, it did not break through where physics, equipment, and supply chains still favor incumbents.

This means that China can now support large parts of its AI and industrial base without foreign chips, but it cannot yet lead the frontier.

Exports hid a weak profit picture

On the surface, 2025 looked like a banner year for China’s growth, but profitability does not agree yet.

Industrial profits fell 13.1% year on year in November, according to official data. High-tech manufacturing profits rose around 10%, while most other sectors saw declines.

Deflation played a role. Prices stayed weak, so firms competed on volume, not margin.

Tech-linked exporters sold more units but earned less per unit. That is sustainable for a time, especially with state backing. It is harder to sustain without rising household demand or pricing power.

This gap explains why policymakers kept pushing stimulus into investment and trade-in programs rather than relying on organic demand.

The tech engine ran hot, but the rest of the economy did not.

The geopolitical win had limits

China also scored points on the global stage. It stood its ground against Donald Trump during a renewed trade clash.

It used rare earth leverage, it redirected exports to Southeast Asia, the Middle East, and Latin America. By year’s end, tensions eased into a one-year truce.

Still, the costs were visible. Exports to the US fell nearly 20%. Political risk rose in Europe. Trade defenses followed Chinese goods into new markets.

China won room to breathe, but did not secure a stable external environment.

Advanced manufacturing depends on global demand. AI hardware relies on complex supply chains. A strategy built on exports and state support works best when global politics stay calm.

That condition is not guaranteed.

Why Xi ran the victory lap anyway

Xi’s speech was less about bragging and more about signaling.

It told local officials that tech and industry remain the priority. It told engineers and investors that the state stands behind them.

It told foreign rivals that pressure has limits.

On those terms, the message made sense. China in 2025 showed it can adapt under constraint. It showed depth in engineering and scale in deployment. It avoided the collapse many predicted.

The risk lies in believing the story too much.

Tech progress cannot replace weak household income growth. AI-driven factories cannot solve deflation alone.

Semiconductor advances below the frontier do not end dependence. The victory lap highlighted real achievements. It also glossed over the fragility underneath.

China did not dominate tech in 2025. It proved it cannot be pushed out of the race. That is a meaningful result. It is not a final one.

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Alibaba stock price has remained in a bear market after plunging by ~20% from its highest point in 2025. It dropped to a low of $146 in December and then rebounded to $152 in the pre-market. This article conducts a technical analysis pointing to a rebound.

Alibaba stock price technical analysis 

The daily timeframe chart shows that the BABA stock price has retreated in the past few months, moving from a high of $192 to the current $152.

It has moved above the 200-day Exponential Moving Average (EMA), which is a bullish sign in technical analysis.

Most importantly, the stock has formed a giant falling wedge pattern, which is made up of two descending and converging trendlines.

The two lines are now nearing their confluence level, which is a sign that a bullish breakout is about to happen. 

At the same time, the wedge pattern is forming after the stock pumped from a low of $103 in July to a high of $192 in October. That is a sign that it is forming a bullish pennant pattern, which is made up of a vertical line and a symmetrical triangle.

Therefore, the stock will likely bounce back in true coming weeks or months, potentially to the psychological level at $192, which is ~25% above the current level. A move above that price will point to more gains, potentially to the psychological level at $200

On the other hand, a drop below the 200-day EMA level at $140 will invalidate the bullish Alibaba forecast and point to more downside in the near term.

Alibaba stock chart | Source: TradingView

BABA stock has numerous catalysts 

Alibaba stock price rally will be driven by the ongoing boom in the artificial intelligence (AI) industry, which is boosting its cloud business.

The most recent results showed that its Cloud Intelligence Group’s revenue rose by 34% in the third quarter to $5.59 billion. This growth also happened in terms of its profitability, whose EBITDA jumped by 35% to $506 million.

Alibaba has continued to invest in the AI industry, where it has launched several models, including Qwen and Kimi, which are good alternatives to OpenAI’s ChatGPT.

The company’s other businesses are also doing relatively well, with the International Digital Commerce Group growing by 10% in the third quarter to $3.93 billion. Its e-commerce revenue also rose by 9%.

Wall Street analysts are optimistic that the company’s business will continue doing well in the coming years. The average estimate is that its 2025 revenue will be 1.04 trillion yen, up by 4.7% from 2024. This revenue is expected to then hit 1.15 trillion yen this year, with its earnings-per-share (EPS) rising to 65.64 yen from 46.3 yen.

Alibaba is also a relatively cheaper company compared to its peers. It has a forward PE ratio of 20, much lower than Amazon’s 32 and the S&P 500 Index average of 23.

Therefore, a combination of strong cloud business, strong earnings, its cheap valuation, and technicals points to more upside in the near term.

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Palm oil prices extended their decline for a second session, slipping to the lowest level in two weeks as weakness in crude oil markets coincided with softer export data from Malaysia.

The move reflects a broader reassessment across energy and vegetable oil markets as traders respond to falling fuel prices, slowing shipments, and pressure from rival oils.

Futures fell below 4,000 ringgit a ton on Friday, a level closely watched by the market.

Crude oil weighs on pricing

The slide in palm oil followed renewed weakness in crude oil, which ended the year with its steepest annual loss since 2020.

Markets have been grappling with a combination of rising global supplies and persistent geopolitical risks, both of which have capped price recovery.

West Texas Intermediate crude fell 0.9% on Wednesday to settle at $57.42, completing a 20% decline for 2025.

Lower oil prices tend to reduce demand for biodiesel feedstocks, including palm oil, weakening one of the commodity’s key sources of support.

This pressure was also evident across the wider vegetable oil complex.

Soybean oil, palm oil’s closest rival in both food and fuel markets, closed 1.8% lower on Wednesday, reinforcing the negative tone and limiting substitution-driven demand.

Export data adds pressure

In addition to energy market weakness, export figures from Malaysia weighed on sentiment.

Shipments from the world’s second-largest palm oil producer fell 5% month on month in December to 1.2 million tons, according to data from AmSpec.

The weaker shipment data amplified the impact of falling crude prices, pushing palm oil futures further below recent trading ranges.

The softer export performance suggested near-term demand remained subdued, despite seasonal factors that often support consumption toward the end of the year.

The latest figures suggest demand has not yet picked up meaningfully at the end of the year.

Prices of related contracts in Asia reflected the cautious mood.

Refined palm oil for May delivery on China’s Dalian Commodity Exchange declined 0.9% to 8,584 yuan a ton, while soybean oil for May was little changed at 7,862 yuan a ton.

Seasonal demand ahead

Despite the recent losses, attention is beginning to shift toward potential buying interest linked to upcoming festivals.

Demand ahead of the Lunar New Year and Ramadan in February 2026 is expected to support consumption, particularly if prices remain below the 4,000 ringgit a ton threshold.

At these levels, the market is seen as attractive for bargain-buying, which could help stabilise prices after the recent slide.

Seasonal restocking typically increases purchases across major importing regions, offering some relief from current headwinds.

For now, palm oil remains caught between falling energy prices and weaker exports on one side, and expectations of festival-driven demand on the other.

Price direction in the near term is likely to continue tracking crude oil movements and export flows from Malaysia.

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Gold prices saw a bounce-back in key Asian markets this week, trading at a premium in India and China for the first time in roughly two months, as a recent price correction from all-time highs spurred a revival in retail demand.

Indian dealers moved from offering a discount of up to $61 last week to charging a premium of as much as $15 per ounce over the official domestic prices this week, according to a Reuters report. 

This shift in pricing includes the standard 6% import and 3% sales levies.

Domestic gold prices were trading at approximately 136,700 rupees per 10 grams on Friday. This follows a record high of 140,465 rupees that was reached last week.

Improvement in retail purchases

A New Delhi-based jeweller noted a slight improvement in retail purchases this week, following a sharp correction in prices from their record-high levels.

The international benchmark spot gold market kicked off the New Year with remarkable strength on Friday, immediately resuming the vigorous rally that characterised the end of the previous year. 

This strong opening follows a monumental performance in 2025, during which gold prices soared by an astounding 64%. 

This substantial gain marked gold’s most significant annual percentage increase since 1979, underscoring a powerful shift in investor sentiment toward the precious metal.

The continuation of the rally suggests that the underlying drivers of gold’s historic surge remain firmly in place as 2026 begins. 

Analysts are pointing to a confluence of factors for the metal’s resilience and attractiveness. Primary among these are persistent global geopolitical uncertainties, which typically drive investors toward safe-haven assets like gold. 

Furthermore, sustained inflationary pressures in key economies, coupled with an expectation of central banks either pausing or reversing aggressive interest rate hikes, make non-yielding gold a more appealing store of value. 

The market’s move on Friday signals a widespread belief that the conditions which fueled the record 2025 gains—namely, economic instability and a search for tangible security—are set to persist well into the new financial year.

“Many buyers are holding off on purchases because prices are volatile and they’re unsure which way the market is headed,” a Mumbai-based bullion dealer with a private bank was quoted in the Reuters report.

China’s domestic market

In China, a leading consumer market, gold shifted this week from a discount to a premium of $3 an ounce over the global spot price benchmark, according to the report. 

This change was driven by strong retail demand and a significant correction in spot prices.

Independent analyst Ross Norman said:

It seems that (Chinese) retail demand remains relatively robust, and especially so if you consider where prices are just now. Long and short, physical demand volume remains pretty robust…after a good correction in prices.

According to Peter Fung, head of dealing at Wing Fung Precious Metals, the recent price volatility deterred customers. This was exacerbated by the thin trading volume typical of the end-of-year holiday season.

Gold prices varied across other Asian markets. In Singapore, gold was sold at a range between a $0.50 discount and a $1.20 premium per ounce. 

Hong Kong saw gold trade from par (at spot price) up to a $1.70 premium, while in Japan, bullion was sold exactly at spot prices (at par).

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New car registrations for Tesla fell sharply in several key European markets in December, underscoring the company’s mounting challenges across the region even as it posted record sales in Norway, Europe’s most mature electric-vehicle market.

In France and Sweden, Tesla registrations declined by roughly two-thirds or more last month, extending a slowdown that has weighed on the automaker’s European performance since late 2024.

Sharp declines in France and Sweden

In France, Europe’s third-largest car market after Germany and Britain, Tesla registrations — commonly used as a proxy for vehicle sales — fell 66% in December to 1,942 vehicles, according to data released by PFA on Thursday.

For the full year, Tesla registrations in France dropped 37%, reflecting sustained pressure on demand.

Sweden saw an even steeper monthly decline. Tesla registrations fell 71% in December to 821 vehicles, data from Mobility Sweden showed.

On a full-year basis, registrations in Sweden declined 70% in 2025.

The weakness in these markets comes despite Tesla rolling out cheaper versions of its Model Y and Model 3 across Europe, a move that had been expected to revive demand.

So far, the strategy has failed to meaningfully reverse the downturn.

Competition, protests weigh on brand

Tesla’s European sales have been slowing since late 2024 amid intensifying competition from both established automakers and new entrants, an ageing vehicle lineup, and protests linked to CEO Elon Musk’s public praise of European right-wing political figures.

These factors have weighed on brand perception in several countries, particularly in Western and Northern Europe.

Up to November, Tesla’s market share across Europe, Britain and the European Free Trade Association slipped to 1.7%, down from 2.4% in the same period of 2024, according to industry data.

Norway stood out as a clear exception. Tesla registrations there jumped 89% in December from a year earlier to 5,679 vehicles, registration data showed on Friday.

The brand captured more than 19% of the Norwegian car market in 2025, setting a new annual sales record.

Tesla’s strong showing in Norway reflects the country’s unique EV landscape, where almost all new car sales are electric and supportive policies have long favoured battery-powered vehicles.

Analysts brace for global delivery decline

The uneven European performance comes as analysts expect Tesla to report a significant decline in global vehicle deliveries later Friday.

Consensus expectations suggest deliveries fell by around 11% year over year in the fourth quarter.

Tesla took the unusual step earlier this week of publishing its own average of analyst estimates, which was even more pessimistic and pointed to a 15% drop.

The company-compiled consensus of 20 brokers forecasts fourth-quarter deliveries of 422,850 vehicles.

By comparison, the FactSet consensus stands at roughly 440,000 units, down from about 460,000 just a few weeks ago.

More recent analyst estimates have drifted lower, with some clustering closer to 415,000 vehicles.

For context, Tesla delivered around 497,000 vehicles in the third quarter of 2025 and approximately 496,000 vehicles in the fourth quarter of 2024, underscoring how sharply demand has cooled.

Policy shifts add to pressure

A major driver of the slowdown has been the expiration of the US federal electric-vehicle purchase tax credit, worth up to $7,500, at the end of September.

The policy change made EVs more expensive overnight and pulled forward demand into the third quarter, when Tesla posted a record 497,099 deliveries.

That surge, however, also set the stage for a weaker finish to the year.

In Europe, Tesla’s challenges are particularly stark.

Through the first 11 months of last year, Tesla sales across the region fell 28%, even as industry-wide registrations of battery-electric vehicles jumped 27%, according to the European Automobile Manufacturers’ Association.

The data highlights the extent to which Tesla has been losing ground to rivals in a market that continues to expand overall.

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London’s blue-chip FTSE 100 index crossed the symbolic 10,000-point mark for the first time on Friday, extending a powerful rally in UK equities that gathered pace through 2025 and has carried into the new year.

At 10:50 am, the index had slipped below the 10,000 mark and was trading at 9,971.23.

The index has risen by nearly 21% over the past 12 months, marking one of its strongest annual performances since 2009 and outpacing the S&P 500, which gained just under 17% over the same period.

The FTSE 100 tracks the performance of the 100 largest companies listed on the London Stock Exchange, offering heavy exposure to banks, miners, energy groups and defence firms.

Miners, defence firms and banks lead gains

Mining stocks have been among the biggest contributors to the index’s advance, supported by higher metals prices.

Antofagasta, Rio Tinto and Endeavour Mining have all benefited from strong commodity markets.

Fresnillo was the standout performer in 2025, with its shares rising about 450%, driven by record gold and silver prices.

Defence stocks also played a major role.

BAE Systems, Babcock and Rolls-Royce all saw strong gains as NATO’s Western European members committed to higher defence spending, boosting order books and earnings visibility.

Banks delivered solid returns as well, supported by resilient credit quality and easing interest rates.

Lloyds, Barclays, HSBC and Standard Chartered all posted strong share price gains as defaults remained low and margins held up better than expected.

Fastest climb between milestones

According to investment platform AJ Bell, the move to 10,000 represents the fastest ever rise between 1,000-point milestones for the FTSE 100.

The benchmark index reached the five-digit milestone in just 171 days after first hitting the 9,000-point mark in July 2025

“Previously, the fastest jump in blocks of 1,000 happened when the FTSE 100 went from 5,000 to 6,000, which took 229 days in the late 90s,” said Dan Coatsworth, head of markets at AJ Bell.

“The longest period was 6,206 days between hitting 6,000 in March 1998 and 7,000 in 2015. Admittedly, that period included a global financial crisis, so it was unusual times,” he said.

Profits, buybacks and rate cuts support stocks

Analysts say several structural tailwinds have helped UK equities outperform.

Corporate profits have improved, while companies have returned increasing amounts of cash to shareholders.

Lower interest rates from the Bank of England have also provided support, even though government bond yields have remained stubbornly high.

“Lower interest rates from the Bank of England may have helped, too, even if benchmark government bond yields have not quite stuck to the script as the 10-year gilt yield has barely fallen even as the Monetary Policy Committee has cut the base rate,” said Russ Mould, AJ Bell investment director, in a note last month.

Sue Noffke, head of UK equities at Schroders, has pointed to what she describes as corporate self-improvement, with companies tightening capital allocation and leaning more heavily on share buybacks.

“There is a long list of companies that can be seen as getting stricter in their capital allocation in pursuit of better returns, and being prodded by shareholders to do so,” Noffke said in comments cited by the Guardian late last year.

She estimates that 55% of large UK-listed companies have bought back at least 1% of their shares over the past year, compared with about 40% in the US.

Shell alone has repurchased more than 20% of its equity since 2020.

“The UK stock market has moved on from being the dividend yield capital of the world,” she argues.

“It’s still attractive on dividend income, but it’s not so standout. It has now moved to become the share buyback capital of the world.”

“Boring becomes beautiful” as investors prefer the UK to the US during volatile periods

The FTSE 100 also outperformed US equities in 2025 as some global investors grew wary of high valuations in American technology stocks.

Coatsworth said uncertainty has encouraged investors to look outside the US and toward cheaper markets.

“We’ve seen increased interest from foreign investors looking to diversify their holdings and the FTSE 100 has also shone during the more tumultuous periods thanks to its plethora of defensive-style companies,” he says.

While the UK market is often criticised for its heavy weighting toward banks and commodity producers, that composition has proved advantageous during volatile periods.

“Yes, it lacks the excitement of go-go-growth stocks omnipresent in the US, but boring can also be beautiful when it comes to investing. The UK is a rich hunting ground for dividends, and it is also full of companies that have slow but steady growth and which are underappreciated engines for wealth creation,” Coatsworth adds.

Noffke agrees.

“We have a different sectoral mix that is not dependent, or wholly dependent, on an AI thematic. We are cheap. We are cash rich. We’re buying a lot of shares back, and are quite shareholder-friendly. And we’re seeing a lot of companies that, through a combination of top-down from management and bottom-up from the investor base, are showing more grip and more ambition.”

Outlook for 2026 remains constructive

Analysts have begun upgrading earnings forecasts for 2026 and 2027, a notable shift after several years of downgrades.

AJ Bell forecasts the FTSE 100 will reach 10,750 by the end of 2026. JPMorgan sees potential gains of up to 10% over the year ahead, which would put the index close to 11,000.

Still, higher valuations could become a constraint. After the strong rally, the UK market is no longer as cheap as it was.

“The FTSE 100 trades at about 13.5 times consensus forecasts for 2026,” Mould said.

“That is not expensive by historical standards, but it is no longer deeply discounted.”

He noted that continued earnings upgrades could make valuations appear more attractive than they initially seem.

Sector mix shapes risks and rewards

Consensus forecasts suggest that about 54% of the FTSE 100’s pre-tax profits in 2026 will come from just three sectors: financials, oil and gas, and mining.

Strong operational performance from banks and miners has already driven upgrades, while sticky inflation could keep investor interest in commodities and other hard assets.

However, a sharp global slowdown or recession would pose risks, potentially undermining dividend growth and buyback programmes.

“In short, the FTSE 100 is well positioned for a world of steady growth and inflation,” Mould said.

“But a return to the low-growth, low-inflation environment of the 2010s would likely favour technology and long-duration assets instead.”

For now, the index’s milestone reflects renewed confidence in UK equities, with investors betting that earnings strength, shareholder returns and global diversification will continue to support the market in the year ahead.

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The S&P 500 Index and its ETFs, like SPY, VOO, and the IVV had a strong performance in 2025 as the technology boom accelerated. It soared by 20% this year, and Wall Street analysts believe that the trend will continue in the coming year.

Most companies in the S&P 500 Index were in the green, with Sandisk soaring by 585%. Other top gainers during the year were companies like Western Digital, Micron, Seagate, and Robinhood. This article looks at some of the top constituent companies to watch in 2026.

Warner Bros. Discovery is the top S&P 500 Index stock to watch 

The WBD stock price jumped by 171% this year, making it the sixth-best-performing company in the S&P 500 Index. This surge was mostly driven by the bidding war by Netflix and Paramount Skydance, a company backed by Larry Ellison.

The two companies have already made their bids, with Paramount offering a $30 bid for the whole company. Netflix reached a smaller deal that did not include the company’s TV networks.

Now, according to Bloomberg, Warner will reject Skydance’s bid as soon as next week, noting that it had not increased the offer. Skydance, on the other hand, has hinted that it will go directly to its shareholders.

Therefore, WBD will be the top stock to watch as investors watch the developments on the acquisition.

Nvidia (NVDA)

Nvidia, the biggest company in the world, will be another S&P 500 Index constituent to watch in 2026. It has become a giant company that is the face of the AI industry because of its chips.

Nvidia has also become the face of the circular investment approach, where it buys stakes in its clients, who use the cash to buy its chips, boosting its stock.

Analysts are optimistic that Nvidia will continue its growth trajectory in 2026, with the average revenue estimate for the year being $319 billion, a 50% surge from what it will make this year. Its earnings per share are expected to come in at $7.57 from $4.69 this year.

Oracle (ORCL)

Oracle is another top company in the S&P 500 Index to watch. Its stock surged to a record high of $345 this year and then pulled back to a low of $180. The surge briefly made Larry Elisson the richest man on earth.

Oracle stock jumped after its earnings report showed a backlog of over $493 billion, a figure that then soared to over $523 billion in the last quarter.

The challenge, however, is that analysts are doubting whether the backlog is real as most of it came from OpenAI, a loss-making company. Also, investors are focused on its soaring debt, upcoming maturities, and the fact that it made a negative free cash flow.

Lululemon Athletica (LULU)

Lululemon stock price continued its strong downward trend this year as it crashed by 45%. It has erased billions of dollars in value, becoming a fallen angel.

The company’s decline is mostly because of the ongoing competition in the industry, with companies like Nike and Adidas fighting for market share. It also dropped as its growth accelerated during the year  

Lululemon will be in the spotlight in 2026 as Chip Wilson, its founder, launched a proxy fight by nominating three independent directors. This announcement came three weeks after the company’s CEO left without a clear successor.

Therefore, the company will be in the spotlight as investors watch how it will evolve. Also, investors will be watching the actions of Elliot Management, which took a $1 billion stake. Elliot has suggested that Jane Nielsen, a former executive at Ralph Lauren should take over as the CEO.

Fiserv (FISV)

Fiserv, the giant fintech company, will be in the spotlight in 2026 after the stock plunged by over 40% within a day after the management slashed its guidance and added more board members and a new CEO.

The company said that its adjusted earnings will be between $8.50 and $8’60, much lower than the previous guidance of between $10.15 and $10.30, pointing to more deterioration in Argentina..

Other key companies to watch are big laggards like Chipotle Mexican Grill, The Trade Desk, Deckers Outdoor, Dow, FactSet, and UnitedHealth.

On the other hand, investors will pay a close attention to its big winners like Sandisk, Western Digital, Micron, and Robinhood.

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