The European carbon market opened Thursday’s session with a massive jump that resulted in temporary gains of nearly 7% in the first hour of trading, tracking similar morning moves in global equities and commodities markets, triggered by Trump’s tariff pause.

However, the benchmark EUA Dec’25 failed to maintain its early momentum and reversed its upward trend as the initial euphoria began to fade. Carbon prices surrendered most of the impressive gains seen during the morning session, ultimately settling at €62.12 with a modest daily rise of just 1.9%.

The bearish trend observed in the afternoon was fuelled by falling gas prices and weak auction results. The sale for 3.2 million allowances closed at €62.08, well below the spot market at that moment. The cover ratio of just 1.33, the lowest so far this year, also suggests a reduced interest in buying.

After opening with an 8% surge, the European gas market reversed course, wiping out its early gains to close the session with a 1.11% loss. “With Trump continuing to impose high levies against China, it’s possible that weaker demand there could leave more gas available for Europe”, said Bloomberg, explaining the downward trend in gas prices.

Early Friday, the European carbon market looks calmer compared to this time yesterday morning, trading around yesterday’s close. However, despite the pause on US tariffs against the EU “there is still massive uncertainty and market players clearly do not consider Trump and the US reliable right now.” warns trader Energi Danmark in a note this morning.