EMISSIONS: EU End of Day Carbon Summary: EUAs Fall, UKAs Stable

EUAs have held onto losses to be weighed down by a selloff in EU gas prices. UKAs are trading broadly stable despite weaker auction results and lower EUAs. * EUA DEC 26 down 0.8% at 86 EUR/MT * UKA DEC 26 up 0.2% at 58.22 GBP/MT * TTF Gas OCT 26 down 1.1% at 72.555 EUR/MWh * Germany Base Power OCT 26 down 1.2% at 160.48 EUR/MWh * Estoxx 50 down 0.3% at 6302.7 * FTSE 100 down 0.1% at 10775.5 * Trend conditions in ICE EUA futures are bullish and the recent shallow pullback appears corrective. The rally on Sep 14 resulted in a breach of key short-term resistance at 86.91, the Jul 22 high, confirming a resumption of the bull cycle that started Mar 19. This maintains the price sequence of higher highs and higher lows. Sights are on 93.80, the Jan 15 high and key medium-term resistance. Initial firm support is 83.39, the 50-day EMA. * Investment Funds slightly reduced their net long positions in ICE EUAs, driven by a decline in options net longs, according to the latest CoT data as of 18 September. * Investment funds reduced net long positions in ICE UKA futures, according to the latest CoT data as of 18 September. * The UKA ICE auction cleared at 57.46/ton CO2e, compared with 62.39/ton