Euro Markets: EUAs follow morning stability with afternoon drop amid falling energy markets

After a relatively calm morning in which prices traded either side of Friday's close, European carbon allowances weakened steadily during the afternoon, dropping by €1.50 by the close as the market absorbed a significant lessening of hostilities in the Middle East over the weekend that prompted energy markets to fall steeply, while the onset of the peak holiday season and continuing digestion of the EU ETS reform package appeared to take priority.