EMISSIONS: EU End-Of-Day Carbon Summary: UKA Rise On Potential ETS Link Progress

EUAs Dec25 are trading lower amid downward pressure in European equities and TTF near close, erasing the gains driven by UKAs rally and TTF upticks in the afternoon. Meanwhile, UKAs Dec25 are trading at the highest level since 24 June, supported by headline that the EU Commission has put forward a draft bill on EU-UK ETS linkage, despite early pressure from higher-than-expected UK CPI data weighing on prices in the morning.

• EUA DEC 25 down 0.49% at 71.16 EUR/t CO2e
• UKA DEC 25 up 2.81% at 51.14 GBP/t CO2e
• TTF Gas AUG 25 up 1% at 34.785 EUR/MWh
• NBP Gas AUG 25 up 1.8% at 83.79 GBp/therm
• Estoxx 50 down 0.5% at 5329.76
• EUA POSITIONING –  Investment funds slightly decreased net long positionings in EU ETS futures on the ICE according to the latest COT data as of 11 July.
• UKA POSITIONING –  Investment funds have cut their net long positions in UK ETS futures on the ICE exchange to the lowest level since mid-April, with open interest falling nearly 15% since peaking at an all-time high in mid-May, according to the latest COT data as of 11 July.
• ICE EUA futures continue to trade above the Jun 30 low. A short-term bearish threat is in place - for now - and gains appear corrective. Recent weakness has resulted in a breach of a number of support points. This undermines a bull theme and note too that support at €69.60, the May 19 low, has also been pierced. A clear break of this level would highlight a stronger reversal. First resistance to watch is unchanged at €72.79, the Jul 3 high.
• The EU Commission have put forward a draft bill on EU-UK ETS linkage, recommending the Member States to open negotiations with the UK, according to Carbon Pulse.
• The EUA-UKA Dec25 spread has narrowed to its lowest level since 2 June at €11.66/t amid stronger gains in UKAs over the past week.
• Bloomberg calls for timely action to relink the EU-UK ETS, stressing a delay will further skew investment decisions, it said.
• TTF front month is slightly higher today amid lower Norwegian supplies following disruption to power supplies at the Nyhamna processing plant.