The European carbon market extended its positive momentum for a sixth consecutive day on Monday, as investors continued to take advantage of the holiday period when the market tends to be less liquid, creating opportunities for larger price movements.

The EUA Dec’25 contract briefly traded at €74.94 before closing at €74.23, posting a daily gain of €0.73. This marks the highest settlement in nearly four months. Despite the Whit Monday bank holiday in many European countries, the trading volume reached 21.68 million allowances which is significantly high, though still below this year’s daily average of 31.38 million.

“It will be interesting to see if the market can establish itself at current price levels after trading range-bound between €70 and €73 per tonne for several weeks,” noted Mind Energy in its morning note.

This morning, the EUA Dec’25 is trading well below the €74 mark, resuming correlation with falling gas prices. TTF front month declined in yesterday’s trading by 1,78% and continues its slide in early trading on Tuesday .

In the absence of any major news, this week’s focus on global markets will be on the US and China trade talks in London with “both sides expected to issue updates later in the day”. Discussions between top officials started on Monday with delegations being vague on the outcome.