EUA hit as US-Europe conflict escalates

Over the weekend, President Donald Trump threatened new tariffs on Denmark, Sweden, France, Germany, the Netherlands, Finland, Norway, and the UK over their vocal opposition to the US acquisition of Greenland. In response, the EU has discussed a EUR 93 billion countermeasure designed to hit US goods and access to the internal market.

European stocks opened lower this morning as markets priced in the risk of an EU-US trade war. This bearish risk has spread to the EU carbon market, as prices opened lower and dropped to a mid-morning low of EUR 88.70/t (at time of writing).