EMISSIONS: EU End-Of-Day Carbon Summary: EUAs/UKAs Rise On TTF, Equities Gains
Jul-03 15:34
EUAs/UKAs Dec25 are trending upward amid mix influence from both TTF and STOXX, with carbon holding onto gains driven up by TTF in the morning, while briefly tightened intraday correlation with STOXX in the afternoon following the release of higher-than-expected US job growth data.
- EUA DEC 25 up 0.26% at 72.12 EUR/t CO2e
- UKA DEC 25 up 0.71% at 48.49 GBP/t CO2e
- TTF Gas AUG 25 up 0.2% at 33.655 EUR/MWh
- NBP Gas AUG 25 down 0.5% at 79.74 GBp/therm
- Estoxx 50 up 0.3% at 5336.97
- Correlation between EUA/TTF for 30-day period at 0.14.
- Correlation between EUA/STOXX for 30-day period at 0.26.
- Correlation between EUA/UKA for 30-day period at 0.74.
- Correlation between UKA/FTSE100 for 30-day period at 0.44.
- The EUA Dec25 premium to the UK equivalent remained at a similar level at €15.84/t CO2e.
- The latest EU ETS CAP3 auction cleared at €70.52/ton CO2e, up 2.19% compared with the previous EU auction at €69.01/ton CO2e according to EEX.
- ICE EUA futures have recovered from Monday’s low. Despite these gains, a short-term bearish threat remains in place for now. Recent weakness has resulted in a breach of a number of support points. This undermines a recent bull theme and note too that support at €69.60, the May 19 low, has also been breached. A clear break of this level would highlight a stronger reversal. First resistance to watch is €74.57, the Jun 24 high.
- BNEF has revised down its 2030 EUAs forecasts from €147/t to €126/t, following the EC announcing that it plans to use the revenues generated by CBAM to compensate heavy industries under EU ETS, it said.
- TTF holds steady with the forecast of warm weather in mid-July set against muted demand in Asia so far this year. European LNG imports remain healthy and Norwegian maintenance season is coming to an end, while the Floating LNG terminal Energos Force, originally leased to Germany, is now bound for Egypt.
- 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.
- EUA Auction Calendar Week Ahead (Calendar Week 28) - A total of 13.4mn EUAs will be auctioned next week, with five auction sessions will be held. The latest EU ETS CAP3 auction cleared at €70.52/ton CO2e, up 1.5% w/w, rebounded from the lowest level since early May on 30 June, while the 10-day moving averages has broken down to be below 50-day moving averages for the first time since late May.
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PIPELINE: Corporate Bond Update
Jun-03 15:12
- Date $MM Issuer (Priced *, Launch #)
- 06/03 $3B #AfDB: $2B WNG 3Y SOFR+33, $1B WNG 10Y SOFR+64
- 06/03 $2B #Prov. of Ontario: 10Y SOFR+95
- 06/03 $1.5B *CPPIB 5Y SOFR+54
- 06/03 $1.25B *Kommuninvest +3Y SOFR+39
- 06/03 $1B #Hong Kong 5Y Green +50
- 06/03 $500M IADB 2030 tap SOFR+40
- 06/03 $500M Autodesk WNG 10Y +120a
- 06/03 $Benchmark Bank of NY Mellon 3NC2 +75a, 3NC2 SOFR, 11NC10 +100a
- 06/03 $Benchmark GE Healthcare +5Y +110a, 10Y +135a
- 06/03 $Benchmark NAB 3Y +65a, 3Y SOFR, 5Y +75a
- 06/03 $Benchmark Corebridge 5Y +100a
- Expected Wednesday:
- 06/04 $Benchmark IDA 5Y SOFR+46a
- 06/04 $Benchmark British Colombia 10Y SOFR+98a
