Key Facts
- ✓ Eurostar cancelled all trains to and from London due to a power cut in the Channel Tunnel
- ✓ The disruption was caused by an overhead power supply problem and a failed Le Shuttle train
- ✓ The pan-European Stoxx 600 index rose over 0.2% to a record high of 590.65 points
- ✓ US tariffs weighed on exports and real GDP growth in Q2 and Q3 of 2025
Quick Summary
Eurostar has issued a strong advisory for passengers to postpone travel plans following major disruption in the Channel Tunnel. The rail operator cancelled all trains to and from London after a failure in the overhead power supply system, compounded by a stalled Le Shuttle train.
Although the tunnel has been partially reopened, significant delays persist for travelers. Meanwhile, European financial markets have shown positive momentum, hitting record highs to close out the year. The Stoxx 600 index recorded a modest gain, reflecting underlying economic resilience in the region despite external trade pressures.
Rail Disruption Hits Channel Tunnel
Travel between the UK and mainland Europe faces major hurdles following a power outage in the Channel Tunnel. Eurostar was forced to cancel all services departing from and arriving in London due to technical failures.
The disruption stems from two primary issues:
- A problem with the overhead power supply within the tunnel
- A failed Le Shuttle train
Passengers currently in transit or planning to travel have been strongly advised to postpone their journeys. While partial reopening of the tunnel has occurred, the backlog of services and ongoing technical checks mean that significant delays will continue to impact schedules for the foreseeable future.
"Eurostar ‘strongly advise’ passengers to postpone journeys"
— Eurostar
European Markets Reach New Highs
Despite the travel chaos, European stocks have ended the year on a high note. The pan-European Stoxx 600 index climbed by more than 0.2% this morning, reaching a record high of 590.65 points.
This market performance is underpinned by stronger-than-expected economic data. The Euro area and UK economies have demonstrated greater resilience throughout 2025 than previously forecast. Although the region's growth continues to trail behind the United States, it has surpassed expectations set at the close of 2024.
Economic Resilience Amid Trade Tensions
The economic outlook for Europe has improved despite headwinds from global trade disputes. US tariffs negatively impacted exports and real GDP growth during the second and third quarters of the year.
However, the region's internal economic strength has provided a buffer. Domestic demand has remained robust, outperforming initial projections. This sustained internal consumption has been a key factor in the upward revision of GDP growth figures for both the Euro area and the UK.
As a result, the final economic output for 2025 has proven higher than the forecasts issued by analysts at the end of the previous year.
