Closing summary
With the rest of the evening’s trains leaving their stations again, we’ll draw our live coverage to a close.
Eurostar and LeShuttle services between the UK and Europe were suspended for most of Tuesday due to a power supply problem in the Channel tunnel
The timing of the power failure was terrible given it came the day before New Year’s Eve, with many travelling to end-of-year holiday destinations.
A LeShuttle train which stopped in the tunnel was also to blame for the delays
Travellers scrambled to find other transport and accommodation options after all Eurostar services were postponed between London, Paris, Brussels and Amsterdam.
Some trains in Europe not using the Channel crossing – e.g. Paris-Brussels route – were also suspended due to the overall delays
Services resumed around 1600GMT after the Channel tunnel reopened – but with only one of two rail lines functioning
Eurostar told people travelling on Tuesday to rebook for a different day given expected delays
The company holds a monopoly on passenger trains through the Channel tunnel linking London and Paris. It suffered delays on the route in August too after an electrical fault.
You can read the full report on today’s delays below:
Updated
What caused the blockage again?
Overnight on Monday, there was a problem to the power supply in the Channel tunnel.
Pictures circulating in a Eurostar train driver’s messaging group, published by the BBC, appear to show a downed cable in one of the rail tunnels.
Eurostar blamed “overhead power supply issues” and a failed train operated by LeShuttle, a service which transports vehicles and their passengers between the ports of Calais, France, and Folkestone, England.
The overnight tunnel issue affected the very first trains in the morning and led to the cancellation of most of Tuesday’s Eurostar journeys between the UK and continental Europe.
By the afternoon the tunnel had reopened but Eurostar said it was only operating one of the two train lines.
The Channel tunnel is about 50km (32 miles) long, and more than half of it is undersea. It is the only fixed rail line crossing the English Channel.
James Walsh, who visited St Pancras this morning because his girlfriend was meant to catch the 1:30pm Eurostar to Paris, reports:
The security guards told us “no trains to Paris all day” [this was before 1pm] which was news to my girlfriend’s friend in Paris, who works for Eurostar and was waiting for news from the company crisis meeting!
We’ve given up for the day, but a couple next to us were plotting to get a train to Dover and try their luck with the ferry, which seems ambitious. It’s a shame you can’t just get a through ticket from Victoria these days…
Given my girlfriend still hasn’t got an email or any other info from Eurostar about the cancellation, it seems like a bit of a snafu (technical term) on the communication front.
While both the Eurostar and Le Shuttle are operating some services again there are still major delays.
Le Shuttle, the car train, says on its website there’s a three-hour delay.
The Eurostar is listing its 6pm (ES 9046) and 7pm (ES 9050) London-Paris trains, and corresponding Paris-London journeys as operating but subject to delay and last-minute cancellation. The 8.01pm train was cancelled.
Updated
Passengers tell stories of disruption, delay, and free crisps
People have been getting in touch about their travel delays due to the disruption in the Channel tunnel.
Stephanie Roberts, 50, who works in IT and lives in Ashford, was returning home from a two-week holiday in Le Touquet, with her husband, Simon and their 18-month-old French bulldog, Dempsey.
Stephanie tells us:
“We began queuing in Calais in the Eurotunnel at 10.30am French time.
There was very little information, so we were scouring social media and news websites to find out what was happening. In the end, we were waiting for more than five hours before we were able to board a train.
“There was no food or water, but luckily we had brought a baguette with us, so we were able to munch on that. We bought a small bottle of water from a vending machine for €3 for Dempsey. The price is not the issue, it’s the principle.Had we known about the delays, we would have stayed in France and travelled on a different day. We eventually started moving - six hours late.”
“I was supposed to be back at work today, but they have been very understanding, and we have been able to do some limited emailing. Luckily, we have a short journey home to Ashford but I think I would be more stressed if our onward journey home was longer.”
Kate, 58 an accountant from Woking, was travelling with her husband and daughter to Caen, France, to meet up with friends who were visiting from Australia.
“We arrived at Folkestone at 9am for a 10.30am train, but were told on check-in that there were three-hour delays. This changed at around 11.30am to “service suspended you can get a ferry and contact our customer service who will assess each case with regard to compensation”.
Staff at the terminal were doing their best but they couldn’t promise much. They were handing out food vouchers, playing cards and crisps, and people were calm. We then drove to Dover, where we were able to catch a ferry to Calais. Once there, we will drive to Caen. Lots of people have booked onto ferries.
It has cost us an extra £158. It means we will be delayed by about five or six hours, but it’s not the end of the world.”
Sophie Hayes, 52, a programme leader of fine art at UWE, Bristol, who lives in Salisbury, is travelling with her partner and parents to Épagny, in the Haute-Savoie region of France, for a short New Year’s holiday.
“We are stuck in limbo in Folkestone in our car at the Eurotunnel terminus. We arrived very early, 8am, and we were meant to leave at 10.24am, but we are still waiting. We are stuck in a queue of cars waiting to get on the train and we can’t move. There are lines of cars.”
“I’m not sure I can eat any more of the crisp packet freebies they have been giving out. We’ve been taking photos galore to mark this non-journey. I’ve already held and played with someone’s baby, and luckily have a good book to read.
“We are not sure when we will finally get to Calais. At this rate, we will have to find accommodation for the night as the journey to our destination is about a seven to eight hour drive away.”
If you’d like to get in touch with us about your journey today, you can do so here.
Afternoon summary
As services gradually resume through the Channel tunnel, here’s a recap of the situation so far.
Eurostar passengers have suffered severe disruption today after a power problem in the Channel tunnel forced many services to be cancelled, ruining New Year’s Eve plans.
Most trains between London and Paris were suspended, due to the power failure and a broken-down LeShuttle train, leaving disappointed passengers stranded at St Pancras and Gare du Nord.
One, Jack Slater, had to cancel his New Year’s Eve trip to Paris with his girlfriend.
He told us:
“We’re being advised to re-book for tomorrow, but all of the trains are fully booked already so the only option would be to upgrade to a first class seat - which is an extra lot of money.”
Drivers hoping to take the LeShuttle car train from Folkestone to Calais also faced hours of delays, as it also couldn’t run through the tunnel until the power problem was tackled.
This afternoon, tunnel operator Getlink has reported that LeShuttle service have resumed very gradually on one track, and are operating alternately in both directions with significant delays.
Additional shuttles will be added in the evening and until tomorrow morning to help drivers reach their destination.
Eurostar has ‘strongly advised’ passengers not to try to travel today, even as it tries to gradually resume services.
Currently the 6.01pm and 7.01pm services from St Pancras to Paris are not showing as cancelled on its website, although all other trains from the UK to the French capital since 7am were scrapped.
The UK’s Department for Transport has warned that “significant disruption is likely for the remainder of the day.”
Updated
PA Media report that some Eurostar passengers waiting in London have filed through towards the departure and security area after some services resumed.
An announcement at King’s Cross St Pancras told hundreds of people waiting that the trains that will be running are fully booked while some remain cancelled.
A staff member held up a sign for passengers on the 3.04pm service to Brussels to come forward.
Those waiting looked their phones and peered over the crowd to look at the departure boards.
Others took their suitcases and walked away from the Eurostar area.
London-Amsterdam services to terminate in Brussels
Eurostar services from London to Amsterdam today are not reaching the Netherlands.
Both the 15.04 from St Pancras, and the 18.04, are now set to terminate in the Belgian capital, and will not carry on to Rotterdam or Amsterdam.
Eurostar says:
Due to ongoing delays caused by the disruption in the Channel Tunnel your train can only run to Brussels-Midi/Zuid. Your train won’t be stopping at Amsterdam Central and Rotterdam Central today.
Updated
Significant disruption to journeys through the Channel tunnel are “likely for the remainder of the day”, a Department for Transport spokesperson predicted this afternoon.
The spokesperson said:
“Eurotunnel is working with operators to resume some services while repairs to overhead electrical cables in the Channel Tunnel are ongoing, however significant disruption is likely for the remainder of the day.
“We are working with Eurotunnel, Eurostar and the Kent and Medway Resilience Forum (KMRF) to minimise disruption for passengers.
“Passengers are encouraged to check with their operator for updates and guidance.”
Updated
LeShuttle service resume with delays
Getlink, which manages and operates the infrastructure of the Channel tunnel, has confirmed that services on the LeShuttle car train have resumed.
Extra services will be added to help clear the backlog of drivers stuck at its ports.
It says:
Following the incident related to a power supply outage affecting trains in the tunnel:
LeShuttle service resumed very gradually on one track shortly before 3:00 p.m. CET. Service is operating alternately in both directions with significant delays.
Additional shuttles will be added in the evening and until tomorrow morning.
Waiting times will be adjusted throughout the day.
Our teams are continuing to work on repairing the power supply at the same time.
Eurotunnel apologises for the inconvenience and thanks its customers for their patience and understanding.
Updated
Eurostar: services will start to resume as tunnel 'partially reopens'
Eurostar says it will resume services from the UK to Europe, but also warns that the earlier power supply issue remains and “strongly” advised passengers to postpone their journey.
A message to customers on the train operator’s website said:
“As the Channel Tunnel has partially reopened we will start to resume services.
“The overhead power supply issue remains, and we strongly advise all our passengers to postpone their journey to a different date.
“Please don’t come to the station if your train is confirmed as cancelled.
“We regret that trains that can run will be subject to severe delays and possible last-minute cancellations.
“Please check for live updates on the status of your train on the Train status and timetables page.”
Eurostar’s website still shows two departures from St Pancras to Paris this evening, leaving at 6.01pm and 7.01pm.
Almost all eurostar trains from St Pancras to Paris today are now shown as cancelled on its online service page.
The only two not classed as cancelled are the 18.01 and 19.01 services.
However, for these trains, Eurostar says:
Due to a problem with the overhead power supply in the Channel Tunnel and a subsequent failed Le Shuttle train, our trains are likely to be subject to severe delays and last-minute cancellations. Your train is currently scheduled to run, but your journey could be disrupted. We strongly advise all our passengers to postpone their journey to a different date. Please don’t come to the station unless you already have a ticket to travel.
And indeed, the 18.01 train was showing as ‘cancelled’ at an information board at St Pancras earlier today:
Several hundred Le Shuttle passengers were stuck in their vehicles after passing through passport checks and security at the terminal in Folkestone, Reuters report.
Officials said that for the time being they could neither go forward - there were no trains - nor backwards, because they had already crossed into the French control zone.
Alison Raby said she had booked a day trip to a theme park in Belgium, but the four-hour delay made the excursion pointless.
“We’re stuck, basically,” she told Reuters.
The number of cancelled cross-Channel trains today has now risen to 18, according to Eurostar’s website.
Its status update page shows 12 trains were cancelled this morning, starting with the 6.40am service from Amsterdam Centraal to St Pancras, and ending with the 11.12am service from Paris Gare du Nord.
That’s on top of the six trains listed as cancelled this afternoon (see earlier post)
Which? Travel: advice for passengers
Rory Boland, editor of Which? Travel, has provided advice to customers affected by the Channel tunnel outage.
“Travellers will be incredibly frustrated to have had their New Year’s Eve plans thrown into uncertainty because of train cancellations.
“Those who have had their train cancelled have the option to exchange their booking or claim a refund or Eurostar e-voucher. For delays, travellers are entitled to compensation.
“Check the Eurostar website for live updates and consider other options for your travel plans. If you are delayed overnight, you have the right to be put up in a hotel or be reimbursed for one.
“It may also be possible to use other routes to get home, such as the ferry, but you will need to contact Eurostar first or risk being left out of pocket.”
Updated
A broken down LeShuttle train has been moved out of the Channel tunnel, a Eurostar spokesperson has told the PA news agency.
The operator said none of its passengers are stranded inside the tunnel after a power failure caused its closure, so that’s one relief!
Updated
LeShuttle: our services are starting to resume
LeShuttle say that its services are now starting to resume, after being suspended earlier today.
It apologises for the inconvenience and thanks drivers for their patience as they waited in the queues at Folkestone and Calais.
LeShuttle’s travel update page also warns there are delays of approximately six hours to booked time, and asks passengers to check in as planned.
Updated
Chaos at St Pancras as heartbroken passengers face missing holiday celebrations
At St Pancras station, the station was in chaos earlier today as Eurostar passengers were “stuck in a limbo” waiting for further updates, my colleague Aneesa Ahmed reports.
Announcements were being made that trains had been suspended due to electrical failures in the Channel tunnel. Passengers were frantically on their phones and waiting for information about refunds from their ticket-providers, while many were searching for flights to France and Belgium.
Eurostar passengers had sprawled out beyond just the designated Eurostar area of the station, and were sat in the waiting areas further out. Almost everyone in the station was in a stressed state, and there was a shared sadness over the prospect of missed holiday celebrations.
Sally, who had travelled from Leicester with her sons to catch the 1.20pm train to Brussels to spend New Years Eve, was sat waiting for further information.
“We really just want to find out what’s going on…we’re just stuck in a limbo,” she said.
“From an insurance perspective, we can’t see what we can do from here as we need confirmation that trains have been cancelled before action can be taken.”
Meanwhile, Jack Slater had just come to the decision to cancel his New Year’s Eve trip to Paris with his girlfriend. “We’re being advised to re-book for tomorrow, but all of the trains are fully booked already so the only option would be to upgrade to a first class seat - which is an extra lot of money,” he said.
The pair had been planning this trip since the summer, and were heartbroken to be missing it. The flights were either fully booked, or too expensive, leaving them with no choice but to cancel. When they showed The Guardian their tickets on the Trainline app, it said that it was still due to run - even though it had been cancelled.
Matt Orien came from Seattle in the US with his family. They had planned this trip to Europe for 9 months, and after spending four days in London they were planning to head to France for New Year’s Eve. “This is disappointing, but we have a friend who is helping us out with admin so we’ll hopefully have a way to get there,” he said.
“We’re doing okay and we’ll find a way to have fun… we feel sorry for the people that are stuck in the train, in the tunnel.”
Updated
Channel tunnel operator announces 'gradual' train traffic resumption
Just in! The Channel tunnel operator has announced there will be a ’gradual’ resumption to train traffic later today, the AFP newswire report.
The Channel tunnel’s operator Getlink said train traffic would progressively resume on Tuesday afternoon, after Eurostar said earlier today it was suspending all trains to and from London due to a power supply outage.
“There was an incident on Tuesday morning related to a failure of power supply to trains in the tunnel, requiring a technical intervention currently underway on the cables,” a spokeswoman said, adding traffic should gradually resume from 1400 GMT.
Updated
Updated
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Are you affected by the Channel tunnel disruption? What has been your experience? Have you been able to rebook your journey? How have the cancellations affected your travel plans?
We would like to hear from you – click here to respond. Thank you.
Updated
Crowds of passengers are also gathering at Gare du Nord station, near the departure hall to catch a eurostar train to London:
London-Paris eurostar services 'interrupted until the end of the day'
Passengers at Paris’s Gare du Nord station are being told that services are “interrupted until the end of the day” between the UK and French capitals.
Updated
Updated
Eurostar suspends ’all trains’ to and from London
Eurostar has now reportedly suspended its cross-Channel train services to and from London, following the power supply problem in the Channel tunnel.
A Eurostar spokesperson said (via the AFP newswire):
“There was a power supply problem in the Channel tunnel, followed by a shuttle train coming to a halt inside.
“All journeys to and from London are suspended until further notice.”
As reported earlier (see here) the LeShuttle car transport services have also been suspended. Le Shuttle now say services are “temporarily suspended for up to 3 hours”.
Updated
Here’s a photo of the queue to enter the Eurotunnel LeShuttle site in Folkestone in Kent:
Photos: Passengers wait at St Pancras
Updated
LeShuttle services temporarily suspended due to power problem
LeShuttle, the railway service that transports road vehicles and their passengers through the Channel tunnel between Folkestone and Calais, is also affected by the power problem.
It says:
Services are temporarily suspended for both terminals due to a power supply issue. We are working hard to resolve this. Apologies for any inconvenience caused.
Lieutenant-Colonel Dean Pallant MBE, who leads Die Heilsarmee (the Salvation Army) in Germany, Poland and Lithuania, reports there are lines of cars at Folkestone, waiting to take the trip to Calais.
We are stuck in lines of traffic waiting to board @Eurostar from #folkestone to #calais Going nowhere. Power failure apparently. One way to end the year! @EurostarUK pic.twitter.com/K2jNGqTlZV
— Dean Pallant (@Dean_Pallant) December 30, 2025
Updated
Reuters: Eurostar spokesperson: all Eurostar services to and from London suspended until further notice
Reuters are reporting that a Eurostar spokesperson has said all Eurostar services to and from London are “suspended until further notice”.
That’s sickening news for passengers hoping to get away, or home, in time for the new year.
However, several trains are not marked as cancelled or suspended, yet, on the Eurostar train status page….
The six Eurostar services to or from London cancelled so far are:
ES 9032: The 14.31 from London St Pancras International to Paris Gare du Nord
ES 9141: The 14.52 from Brussels Midi / Zuid to London St Pancras International
ES 9039: The 15.12 from Paris Gare du Nord to London St Pancras International
ES 9036: The 15.31 from London St Pancras International to Paris Gare du Nord
ES 9148: The 17.04 from London St Pancras International to Brussels Midi / Zuid
ES 9047: The 17.12 from Paris Gare du Nord to London St Pancras International
Updated
One Eurostar passenger confirms via X that they have been delayed:
Stuck on @eurostar to Paris just outside the London tunnel entrance. First due to the power supply and now because the previous train to Brussels is broken down in the tunnel.
— Dee Coyle (@00gidg00) December 30, 2025
Here is the latest status update from Eurostar:
Status update
Due to a problem with the overhead power supply in the Channel tunnel and a subsequent failed Le Shuttle train, our trains are likely to be subject to severe delays and last-minute cancellations.
Your train is currently scheduled to run, but your journey could be disrupted. We strongly advise all our passengers to postpone their journey to a different date. Please don’t come to the station unless you already have a ticket to travel.
Updated
Eurostar warns of severe delays and cancellations due to power supply issues in Channel tunnel
Newsflash: Eurostar is advising customers not to travel on its service today, following a problem with the overhead power supply in the Channel tunnel.
Eurostar is “strongly” advising all its passengers to postpone their journey to a different date, due to the power problem and a “subsequent failed Le Shuttle train”.
It is urging customers not to come to the station unless they already have a ticket to travel, and warning that trains could suffer severe delays and last-minute cancellations.
Six trains this afternoon, from St Pancras, Brussels and Paris, have been cancelled (details here). Some other services have been delayed.
Updated
The end of December is a time for forecasts… and Costas Milas, professor of finance at the University of Liverpool, predicts that central banks in America and Britain face a challenging 2026.
In the UK, the Bank of England is faced with an underperforming economy, but one where inflation is still over target – and where strong unions could push wages up faster than productivity.
The US Federal Reserve, meanwhile, has Donald Trump breathing down its neck demanding interest rate cuts.
In a blog post for the London School of Economics, Professor Milas predicts:
Inflation persistence, which has risen over time, will keep UK interest rates higher than longer.
Meanwhile the Bank of England’s Quantitative Tightening policy and Britain’s trade union movement are pushing inflation to opposite directions.
Bigger interest rate cuts in the US will surely stoke further inflation pressures and shake the confidence of international investors in the Fed. In such an unwelcome scenario, the Fed would suffer huge reputational damage which would then undermine its ability to effectively tackle future financial crises.
FTSE 100 approaching record high
Britain’s FTSE 100 index has hit a six-week high this morning, as it nudges closer to a new record.
The index of blue-chip shares listed in London has gained 27 points to 9,904 points this morning, up almost 0.4%, with mining stocks and banks in the top risers.
That takes the index to its highest level since 13 November, the day after it reached its record high of 9,930 points…..
Europe's Stoxx 600 index hits record high
European stocks have hit a record high today, ending a strong year on the front foot.
The pan-European Stoxx 600 index has risen by over 0.2% this morning to 590.65 points, a new peak.
European bank stocks are up 1% today, while the aerospace and defence sector is up 0.5%.
This takes the Stoxx 600’s gains in 2025 to over 17%, matching the US S&P 500 index’s performance, but not quite as good as global markets overall.
That rally highlights how Europe’s economy shrugged off threats such as the Trump trade war this year.
As Goldman Sachs analysts explain today:
The Euro area and UK economies proved more resilient in 2025 than we anticipated. US tariffs weighed on exports and real GDP growth in Q2 and Q3, but domestic demand has generally been more robust than we anticipated.
As a result, Euro area and UK GDP growth, while still underperforming the US this year, have turned out higher than in our forecast at the end of 2024.
Updated
XTB: Lack of momentum halts stock market gains
One notable fact about this year is that US stocks have underperformed the rest of the world by the widest margin since 2009.
The S&P 500 has risen more than 17% so far this year, compared to a 29% gain for the MSCI ex-US index.
The last time this happened the global economy was recovering from the financial crisis, reports Kathleen Brooks, research director at XTB:
It’s the penultimate trading day of 2025, and the overriding theme is that global stock indices have lost momentum into year end. There are plenty of reasons for this, including decent returns for 2025, and investors waiting to make big trading decisions until after the Christmas break. But perhaps the most powerful reason is that the MSCI World Index excluding the US has outperformed the S&P 500 by the highest margin since 2009 this year.
The underperformance of US stocks this year compared to other global indices has not stopped US tech firms from getting bigger; however, it does bring up the question of valuations. With US tech firms so richly valued, is it any surprise that investors are turning towards other markets?
Ocado ends exclusivity terms in majority of markets
Shares in grocery technology company Ocado have dipped this morning, after it told the City that it has ended most of its exclusive arrangements to supply its automated grocery warehouse technology to international partners.
The move means Ocado can sell more of its technology to other retailers around the world.
It follow the disappointing news in November that its US grocery partner, Kroger, was closing three warehouses using Ocado’s robotic equipment to assemble customers’ orders.
Ocado told investors this morning:
Ocado Group plc has announced that mutual exclusivity has now ended with retailers in the majority of markets where Ocado’s technology is currently live, including the USA with Kroger.
As the Company announced at its Half Year 2025 results in July, it expected to roll off exclusivity arrangements by the end of the year in the majority of markets. This enables Ocado to bring its proven and much evolved technology offering back to market in many of the world’s largest grocery markets.
Ocado continues to work closely with its grocery retail partners across the world and will continue to build on the positive progress it is making with partners. The Company now also expects to commence new commercial activity in multiple international grocery markets.
Ocado’s shares are down 0.4% at 239p, and have fallen by a fifth this year. Back in February 2021 they traded abover £28, after the Covid pandemic drove demand for online shopping.
Pound up 8% against the US dollar this year
There’s very little action to report in the foreign exchange markets either!
The pound is flat against the US dollar at $1.35 this morning, almost 8% up for this year.
Currency traders spent 2025 trying to second-guess the moves of the Trump administration, ING analysts Chris Turner and Francesco Pesole explains:
The golden rule in football defending is ‘play the ball, not the man’. Translated: it’s not about where the player leans, it’s about where the ball ends up.
For most of 2025, markets ‘played the man’, reacting to US President Donald Trump’s unpredictable trade rhetoric and challenges to Federal Reserve independence. This contributed to an 11% drop in the DXY [the dollar index] in the first half of the year – the steepest first-half decline since 1972.
But recent months have marked a shift. With trade deals providing a stabilising anchor, market participants have recalibrated, refocusing on fundamentals: rate differentials, growth trajectories, debt sustainability, and commodity exposure.
A quiet start to trading across Europe has seen the pan-European Stoxx 600 index rise by just 0.06% this morning.
Victoria Scholar, head of investment at interactive investor, sums up the situation:
“European markets have opened flat with the FTSE 100 attempting to eke out a modest gain. Fresnillo is the top gainer thanks to strength within the precious metals complex. Miners like Antofagasta, Glencore and Anglo American are also top of the leaderboard. In the UK, Octopus Energy said it is demerging with energy software company Kraken, valued at $8.65 billion. The FT reports that Kraken could be set for an IPO within two years.
Precious metals are trading higher, staging an attempted rebound after gold hit a two-week low on Monday. Nonetheless recent modest weakness fails to take much away from gold’s standout performance this year with investors enjoying a gain of over 65% since the start of January.
The Nikkei has finished the year above the key psychological level of 50,000, logging a gain of 26% so far this year in an impressive performance for the Japanese stock market, fuelled in part by optimism towards Japan’s new pro-stimulus prime minister Sanae Takaichi and the hype around tech and AI stocks. This was the third straight annual gain for the index and its strongest performance since 2023.
Wall Street closed the session lower on Monday amid thin volumes with futures pointing to a modestly softer open at lunchtime. In an otherwise quiet day, investors turn their attention to the latest FOMC minutes due this evening for clues into the Fed’s next move. Earlier this month the central bank cut interest rates by 25 basis points to a three-year low marking the third rate cut of the year, supported by a weakening labour market. In 2026, focus will be on an uncertain outlook for interest rates with a divergence of views across FOMC members. Investors will also be paying close attention to see who succeeds Fed Chair Jay Powell in May with President Trump almost certain to back a heavily dovish candidate.”
Updated
London’s stock maket has opened a little higher, although the City has yet to see much sign of the traditional “Santa rally”.
The FTSE 100 share index is up 10 points, or 0.1%, at 9876 points, moving a little closer to the record high of 9,930 set in mid-November.
Mining companies are leading the risers, such as precious metals producer Fresnillo (+2.6%), Anglo American (+1.7%) and copper miner Antofagasta (+1.7%).
Octopus Energy to spin out Kraken at $8.65bn valuation
There’s some festive deal excitement in the UK energy market today.
Octopus Energy has moved closer to spinning off its technology arm, called Kraken, as an independent company, with a valuation of $8.65bn.
The UK energy company is selling a minority stake in Kraken, worth around $1bn, to a syndicate of investors including D1 Capital Partners, Fidelity International, Durable Capital Partners and Ontario Teachers’ Pension Plan Board.
Kraken licenses its AI-powered operating system to utilities worldwide; Octopus says it is now contracted to serve over 70 million accounts worldwide through licensing agreements with major utilities.
Octopus says the move paves the way for Kraken’s formal independence and demerger.
Greg Jackson, founder of Octopus Energy Group, says:
“Kraken is in a class of its own, in terms of technology, capability, and scale. As an independent company with world-class backers and outstanding leadership, it will be free to grow even faster and is set to be a true UK-founded success story.
“Having incubated Kraken, Octopus is a powerhouse of innovation and technology, and will now have even more horsepower to deliver the transformation of energy globally. With over 10 thousand staff, 11 million customers, $10bn of generation under management, and businesses from EV leasing to heat pump design and manufacture, Octopus is set for even greater things over the coming years.
Updated
Japan's Nikkei posts record year-end finish above 50,000 points
Japan’s stock market has ended 2025 at its highest year-end level ever.
The benchmark Nikkei 225 stock average closed above 50,000 on the Tokyo Stock Exchange today.
On the day, the Nikkei shed 187.44 points, or 0.37 pct, from Monday to finish at 50,339.48.
That’s a gain of 10,444.94 points, or 26.18%, this year.
Optimism that Japan’s new prime minister, Sanae Takaichi, will push through higher government spending to stimulate the economy boosted stocks in recent months. Takaichi attended the traditional ceremony to mark the end of the tradng year today,
Updated
European weapons makers, and banks, record strong year
2025 was a good year for European defence companies, and the region’s banks.
An index tracking European weapons makers has surged by 55% by this year, as NATO members have begun to scramble to rearm – with the Russia-Ukraine war continuing and the Trump White House increasingly critical of Europe.
European bank stocks have had their best year since 1997, Reuters reports, up 65% this year.
Introduction: Best year for global markets since 2019
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
It’s the last full trading day of the year, and investors around the world can look back at some strong gains over the last 12 months.
The MSCI All Country World Index, which tracks equities across developed and emerging markets, has gained over 21% during 2025, its best annual performance since 2019 and the second best since 2009.
It was a choppy year, though; nine months ago, we were bracing for Donald Trump’s ‘Liberation Day’ tariffs, which triggered a market slump in early April, followed by a rebound as the US president blinked.
It’s also been a year in which US markets failed to keep pace with the rest of the world, as investors have looked to diversity away from American assets. The S&P 500 index has gained 17% this year, a strong performance, but one that lags behind Germany’s DAX (+22%), the UK’s FTSE 100 (+20%), or Japan’s Nikkei (+26%)
And it was a rough year for the US dollar, which had its worst first half-year in more than 50 years.
Tuesday is the last trading session of the year for several equity markets, including in Japan, South Korea and Thailand, so we can start looking back at the year today (London is open for a half-day session tomorrow).
S&P Global Ratings’ EMEA chief economist, Sylvain Broyer, says one of the lessons from 2025 is that Europe’s economy was better than expected at absorping external shocks.
Broyer explains:
The year delivered a mix of expected and unexpected developments for the European economy. Household consumption strengthened, unemployment fell further, and confidence and productivity finally began to recover. At the same time, the U.S. administration’s decision to raise tariffs on European goods, reinforced concerns about the external environment.
One of the biggest surprises of 2025 was the sharp appreciation of European currencies against the U.S. dollar, despite a tariff shock that would normally argue for a weaker euro, pound, and Swiss Franc.
Another was the scale of fiscal stimulus unveiled by the German government, which prompted substantial upward revisions to growth forecasts over 2026–2028. Together, these factors reshaped the macroeconomic narrative in ways we hadn’t anticipated at the start of the year.
2025 was also dominated by artificial intelligence, of course, and some tech companies had a rather better year on the markets than others.
Google’s parent company, Alphabet, is up 65% this year, as its Gemini service has grown its market shares. Microsoft, though, has gained a more modest 15%.
Chipmarket Nvidia is up 40%, in a year in which its value surged over $4.5bn, while Oracle has risen 17%, amid fears about the amount of debt being issued to fund the AI infrastructure rollout.
The agenda
2pm GMT: US house price index
7pm GMT: Minutes of the US Federal Reserve’s latest interest rate-setting meeting are released.
