Fact check: FTSE 100 had its best day in five months in January
The index has not seen its best day in decades at any point during Rachel Reeves’ time as Chancellor.
Chancellor of the Exchequer Rachel Reeves said the FTSE index had had its best day “for a couple of decades” during her time as Chancellor.
She said: “There was a front page in one of the papers about a record increase in bond yields in one day – you know the chancellor should resign or whatever.
“And then a week later it was a record fall in bond yields and best day for the FTSE for a couple of decades – wasn’t on the front of any papers.”
Ms Reeves’ comments came at around 38 minutes and 50 seconds into the recording.
Evaluation
Neither the FTSE 100 or any of the other largest FTSE indices have had their best days in decades since Rachel Reeves became Chancellor.
The FTSE 100 had a better performance in April 2024 than it has had on any single day since Ms Reeves took the job. The FTSE did at one point reach an all-time high under Ms Reeves’s chancellorship.
The facts
What is the FTSE?
The FTSE can refer to one of several different indices of shares. Those indices include different groups of companies, for instance the FTSE 100 – the main FTSE index which makes up around 80% of the value of the London Stock Exchange – includes 100 of London’s biggest listed companies.
There is also the FTSE 250, which covers the following 250 largest listed companies, the FTSE 350 – which is the 100 and 250 indices added together – and the FTSE All-Share.
There are also many much, much smaller FTSE indices. It is highly unlikely the Chancellor would be referring to these.
It is most likely that the Chancellor was referring to the FTSE 100, but it is impossible to say for sure, so the other indices must also be examined.
What day was the Chancellor referring to?
The Chancellor was likely referring to the FTSE 100’s result on January 17 2025. That day the FTSE 100 gained 114.3 points – a strong performance for the index, and the best performance in January.
A week earlier markets for UK Government bonds – also known as gilts – had seen yields shoot up.
Did the FTSE see its best day in “a couple of decades”?
None of the main FTSE indices have had their best days in decades during Ms Reeves time as Chancellor.
The FTSE 100 gained 114.3 points on January 17. That was a strong performance, however that was only its best performance since August 7 2024 when the index added 140.2 points.
August 7 was therefore the best day for the FTSE 100 during Ms Reeves’s time as Chancellor. But that was also not the best “for a couple of decades” – it had gained more on April 21 2024 when the index rose by 145.2 points.
What about other FTSE indices?
The FTSE 250 gained 567.3 points on January 15 2025. That was the best day for that index during Ms Reeves’s chancellorship, but not the best day for decades. The index had a better day – adding 622.4 points – on November 14 2023.
The FTSE 350’s best day during Ms Reeves’s chancellorship was August 7 2024 when it gained 72.9 points. That was the best day since March 21 2024 when it rose by 76.8 points.
The best day for the FTSE All-Share since Ms Reeves became Chancellor was August 7 2024 when the index rose by 71.81 points. That was the All-Share’s best day since March 21 2024 when it closed the day up 74.97 points.
There are also several other FTSE indices, however the four above are by far the most important. It would be very unusual for the Chancellor to be referring to any of the other indices.
What might the Chancellor have been referring to?
It is possible that the Chancellor misspoke. The FTSE 100 has reached the highest score in history during her time in Number 11 Downing Street.
The Treasury was asked to clarify the Chancellor’s comments, but had not replied at the time of publication.
Links
Electoral Dysfunction podcast (archived)
IG – What is the FTSE 100? (archived)
Coutts – What is the FTSE 250? (archived)
FTSE Russell Factsheet – FTSE 350 Index (archived)
FTSE Russell – FTSE UK Index Series (archived)
Goldman Sachs – UK gilt yields are forecast to decline in 2025 despite recent surge (archived)
