EMISSIONS: EEX Sets To Launch EU ETS 2 Futures On 7 July
Jul-03 14:49
EEX will launch EU ETS 2 futures contracts on 7 July, including April and December expiry for the first three years of the new scheme, with the earliest expiry offered for December 2027, it said.
- ICE had launched the market first EU ETS 2 futures contracts on 6 May, however, the ICE EUA 2 DEC28 demand remained muted since launch, with only 3 traded sessions and 14 open interests as of 2 May.
- BNEF last forecasted EU ETS 2 prices to average €60-100/ton CO2e in 2027 and to hit €145-190/ton CO2e by 2030.
- Following the announcement of the EU 2040 emissions target latest, BNEF said that the tighter cap may push the average EU ETS 2 price up by €25/t from 2027–2035.
- ICE EU ETS 2 DEC28 Futures was priced at 80.53 EUR/t CO2e on 2 July, moving in tandem with ICE EUA DEC25.
- EUA DEC 25 up 0.32% at 72.16 EUR/t CO2e
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OPTIONS: Expiries for Jun04 NY cut 1000ET (Source DTCC)
Jun-03 14:49
- EUR/USD: $1.1200(E1.5bln), $1.1250(E885mln), $1.1350-55(E1.2bln), $1.1400-05(E1.1bln), $1.1450(E1.3bln)
- USD/JPY: Y143.50($698mln), Y144.15-25($580mln), Y145.00($630mln)
- AUD/USD: $0.6435-55(A$1.7bln)
- USD/CAD: C$1.3600($560mln), C$1.3735-50($1.4bln), C$1.3800($621mln)
US DATA: Manufacturing Orders Give Back Prior Gains In April, Outlook Subdued
Jun-03 14:48
Factory orders came in weaker than expected in April, with the 3.7% M/M contraction exceeding the 3.2% drop expected by consensus. Ex-transport orders told the same story: -0.5% in April (+0.2% expected), failing to improve from March's -0.5%.
- This marked the biggest monthly pullback in manufacturing orders in 15 months, and more than reversed March's rise to put manufacturing orders only slightly higher than in sequential. Clearly, there was some pulling-forward of orders in March, ahead of anticipated tariff impacts.
- The strong Feb-March performance kept momentum strong on a 3M/3M annualized rate basis though, at 7.6%, remaining around the strongest levels since mid-2022 - however at April's pace, this is unlikely to persist (and core durables orders are pointing to a slowdown).
- Total factory orders consist of nondurable and durable goods orders, each of which were roughly equal in dollar value in April - nondurable goods orders fell 0.9% M/M, a marking a second consecutive month of sharp contraction (-0.7%).
- Durable goods orders (-6.3%, after +7.6%) were basically unchanged in the final from the preliminary readings, though core capital goods orders (nondefense, ex-aircraft) were adjusted slightly lower to -1.5% (was -1.3%).
- With orders pulling back, and ISM manufacturing among other surveys in contractionary territory, equipment investment and factory activity in Q2/Q3 looks likely to remain subdued vs Q1. Though for equipment investment in particular, this may just be relative: the Atlanta Fed is estimating 8.8% quarterly growth in Q2 after a staggering 24.8% rise in Q1.
EURIBOR OPTIONS: Call Condor Close Out
Jun-03 14:40
ERM5 97.875/98.00/98.125/98.25 call condor, sold out at 11 in 10k.
