Euro Markets: Prices drop below “formidable” price support as participants look for signs of rally
European carbon came under more pressure on Tuesday, falling below a “formidable” price support to a new 13-month low as sellers continued to dominate, causing some traders to wonder whether there is a bullish short-term scenario, while energy markets fell for a second day as weather remained mild and renewables output was healthy.
Read MoreEuro Markets: EUAs slide to 13-month low on push from shorts, options traders amid energy weakness
EUAs weakened on Monday, shedding nearly 3% as the market came under renewed selling pressure after Friday’s rally, while gas prices fell back sharply amid milder weather forecasts and observers predicted that carbon prices appeared likely to remain under pressure for at least another week.
Read MoreEuro Markets: EUAs snap four-day losing streak, post bullish technical signal as selling pressure eases
European carbon prices snapped a four-day losing streak as December began on Friday, with the market supported by the first premium in a daily auction for more than two weeks, before posting the final element of a bullish technical chart signal.
Read MoreEuro Markets: EUAs post 10% monthly loss for November as sellers regain momentum at the close
European carbon prices ended the month of November down by more than 10% month-on-month, settling at a new 13-month low on Thursday as renewed selling during the settlement window unwound earlier strength that appeared to suggest traders were switching focus to the options market, while energy markets rose for the first time in five days.
Read MoreEuro Markets: EUAs drop to 13-month low in “falling knife” market as bearish sentiment persists
European carbon prices fell to a new 13-month low on Wednesday after data from futures exchanges showed that investment funds had built a record net short position after trimming it the prior week, while the main energy markets dropped to their lowest levels in 22 months.
Read MoreEuro Markets: EUAs extend losses amid general energy sell-off, with utilities said to be cutting length
European carbon prices slumped for a second day, falling to a new one-year low as selling across all energy markets continued, while traders also digested news that a major EU emitter had called time on its long-term hedging strategy.
Read MoreEuro Markets: EUAs post largest one-day fall in five months as longs sell, shorts remain in charge
European carbon prices fell by the biggest one-day margin since June after a burst of afternoon liquidation by long-positioned traders drove the market to a new one-year low, as energy prices also retreated amid forecasts of milder temperatures.
Read MoreEuro Markets: EUAs end little changed on day and week as early gains unwind amid energy weakness
European carbon prices posted a marginal advance on the day and week, after earlier increases had given rise to speculation that the month-long decline fuelled by speculative selling may have come to an end as the expiry of the December contract approaches, while energy markets also ended little changed after a late decline on an uncertain weather outlook.
Read MoreEuro Markets: Colder weather forecasts drive EUAs to biggest daily gain in two weeks
European carbon permits traded around their recent support levels in the morning after setting yet another year-to-date low amid an “arm-wrestle” between bulls and bears, before rising strongly in the afternoon to post their biggest daily gain in two weeks, while energy markets rose robustly late in the day with temperatures set to decline.
Read MoreEuro Markets: EUAs post new one-year low after early attempts at rally are beaten back as funds trim shorts
European carbon prices registered their lowest settlement in a year, as well as a hitting a year-to-date low, as traders positioned themselves both before and after the weekly Commitment of Traders data release, which showed investors had trimmed their net short for the first time in five weeks.
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