The European carbon market reversed early losses to rise modestly on Wednesday, following a similar move in equities and “helped by an afternoon rally in gas” as stated by Carbon Pulse. The EUAs reached an intra-day high of €82,66 before closing at €81,12 and posting a modest daily gain of 0,3%.

The stock markets in Europe also started the day on a sour note but rebounded later in the day “ as a rise in healthcare companies GSK and Novo Nordisk following their upbeat quarterly results offset losses in carmaker stocks,” according to Reuters.

On the gas market, TTF front month managed to settle with an impressive 2,67% daily gain, recouping some of the losses suffered a day earlier. “And as predicted, the downward movement was short lived and prices rose again in yesterday’s session back to where they were,” said consultancy Auxillione.

Gas prices reacted to unfavorable weather forecasts suggesting colder temperatures and low wind conditions. “Forecasts for colder weather have raised concerns that we will see steeper draws in gas storage in the coming days” warned ING’s commodity analysts.

During the steep decline of EUAs on Monday, gas prices were higher, suggesting that carbon was reflecting the turmoil on the financial markets moving in tandem with the European stocks. A renewed correlation between gas and carbon prices has been noticed since yesterday but the sentiment once again could change quickly as market participants wait on Trump’s next move.