EMISSIONS: EU End of Day Carbon Summary: EUAs Rise, Diverge From Gas
Jun-06 15:19
EUAs are holding onto gains in Friday’s session after a strong auction result and positive sentiment towards US/China tariff talks after Navarro said a US-China meeting was likely within a week. EUAs are tracking a weekly increase of 4.5% supported by today’s gains and gains in EU gas prices earlier in the week.
- EUA DEC 25 up 1.3% at 73.71 EUR/MT
- ICE UKA Dec25 up 0.2% at 50.61 GBP/MT
- TTF Gas JUL 25 down 0.1% at 36.35 EUR/MWh
- NBP Gas JUL 25 down 0.4% at 85.12 GBp/therm
- UKAs are edging higher with support from EUAs weighed against muted sentiments towards UK-EU relinking after the UK ETS Authority could not confirm a timeline on progress earlier this week.
- TTF front month has fallen slightly today but remains set for a net weekly gain amid optimism around easing US-China trade tensions, with the US and China set to meet within the next week, and supply risks from seasonal maintenance.
- Correlation between EUA/TTF for 30-day period tightened to 0.67, from 0.64 a day earlier.
- The EUA Dec25 premium to the UK equivalent remained at a similar level at €13.67/t CO2e.
- The latest German ETS CAP3 auction cleared higher at €72.30/ton CO2e, compared with €71.11/ton CO2e in the previous German auction on 23 May according to EEX.
- Indirect carbon emissions from operations of the four leading AI-focused firms – Amazon, Microsoft, Alphabet and Meta – increased on average by 150% between 2020 and 2023, amid data centre power demand.
- The European Commission plans to publish its plans for the EU’s 2040 Climate Targets on 2 July, which will involve international carbon credit use, diplomats told Politico.
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OPTIONS: Expiries for May08 NY cut 1000ET (Source DTCC)
May-07 15:17
- EUR/USD: $1.1200(E2.8bln), $1.1220-25(E1.2bln), $1.1250(E1.6bln), $1.1300(E1.0bln), $1.1350(E817mln), $1.1390-00(E3.6bln), $1.1420-25(E1.3bln)
- USD/JPY: Y140.00($4.1bln), Y142.00($1.2bln), Y143.00($1.7bln), Y145.00($1.5bln)
- GBP/USD: $1.3380-00(Gbp810mln)
- EUR/JPY: Y162.20-25(E520mln)
- NZD/USD: $0.6025(N$616mln)
- USD/CNY: Cny7.1500($954mln), Cny7.4500($1.5bln)
US: House Ways And Means Ctte Could Mark Up Tax Portion Of GOP Megabill On Tues
May-07 15:16
Caitlin Reilly at Roll Call reporting on X that the House Ways and Means Committee is tentatively scheduled to mark up the tax portion of the 'Big Beautiful' Republican reconciliation bill on Tuesday, May 13.
- Reilly: "Hearing from multiple sources Ways and Means is tentatively planning for next Tuesday to mark up its portion of the budget reconciliation bill. It hasn't been formally announced and with so much uncertainty around the rest of the package, this of course could change."
- Politico noted similarly, after a series of House Republican meetings yesterday: “Ways and Means Republicans are at least sounding more optimistic that the panel can hold a vote on the GOP tax package in a matter of “days.”"
- More information may be forthcoming after a 15:00 ET 20:00 BST meeting at the Treasury Department of the so-called budget ‘Big Six’ – Treasury Secretary Scott Bessent, White House National Economic Council Director Kevin Hassett, House Speaker Mike Johnson (R-LA), Senate Majority Leader John Thune (R-SD), House Ways and Means Chair Jason Smith (R-MO), and Senate Finance Committee Chair Mike Crapo (R-ID).
- Meanwhile, Republican moderates and conservatives are struggling to resolve differences over cutting USD$880 billion from the purview of the House Energy and Commerce Committee - the most consequential item in the Republican tax and spending package.
- Punchbowl reports that "after a nearly two-hour meeting between the GOP moderates and Speaker Mike Johnson [yesterday], it’s clear that the moderates are winning" on issue of cutting Medicaid.
FED: US TSY 17W AUCTION: NON-COMP BIDS $645 MLN FROM $60.000 BLN TOTAL
May-07 15:15
- US TSY 17W AUCTION: NON-COMP BIDS $645 MLN FROM $60.000 BLN TOTAL
