Euro Markets: EUAs drop early before flatlining as market awaits geopolitical developments

European carbon prices slumped on Monday morning before stabilising in a quiet afternoon, after the second-weakest auction since the EU ETS began triggered a sell-off that appeared to confirm bearish sentiment following US President Donald Trump's decision to ramp up tariffs against all trading partners and the bloc's decision to pause approval of its trade deal with Washington, as well as continuing tensions in the Persian Gulf.