Emissions Trading / Carbon Market News (03/02/2020)

Dear Sir or Madam,

The general hysteria with regard to the corona virus has not only continued to affect the financial and raw material markets, but meanwhile also large parts of the country in Germany. Not only did the DAX dip to 11,725 ​​in the past week, numerous foods such as pasta, flour and yeast also disappeared from supermarket shelves in western Germany.

There are currently just under 90,000 registered infections worldwide, of which 80,000 are in China – a country with 1.4 billion inhabitants. In Germany there are not even 200 cases with 82 million inhabitants, but there are already end times in many of them – the market reactions and the run to the supermarkets cannot be explained otherwise.

From a pragmatic point of view, however, two points can be made: on the one hand, it is an interesting test run to see how long a serious pandemic with a high mortality rate could be contained and, on the other hand, a stress test for banks and the economy.

At the moment, it appears that both the spread of Covod-19 and a little more reason seem to be returning to the markets, as the first counter-reaction appears to be emerging in the financial markets as well as in the commodity and energy markets.

This morning the EUAs can be seen above the 24 Euro mark again. If both Corona and the collective panic do not spread further, there would be a corresponding upward potential.

  (Average Quotes Exchange / OTC)      
Instrument 21/02/2020 28/02/2020 Change
EUA (Spotmarket) 25.55 EUR 23.55 EUR +2.00 EUR
EUA (December-2019-Future) 25.61 EUR 23.61 EUR +2.00 EUR
CER (Spotmarket) 0.24 EUR 0.26 EUR +0.02 EUR
ICE Brent Crude Oil (Benchmark Future) 58.44 USD 50.06 USD -8.38 USD
EURO (Currency, Forex) 1.0848 USD 1.1026 USD +0.0178 USD

(The average exchange quotes and OTC-prices shows the average between bids and ask of several exchanges and OTC markets for carbon emission rights in the ETS. Bid and ask has usually in Spot Market a visible spread. CER CP1 and ERU are eligible in ETS until end of March 2015 and must be swapped into EUA. Crude Oil and Euro Currency shows day-end-exchange quotes. This market information has just an informational character and are no advice or offer to trade carbon emission rights or their futures and options. If you want to unsubscribe, please reply to this mail.)

Please call our international carbon desk if any further questions exist: +49.2831.1348220.

With kind regards,

Advantag Services GmbH