Euro Markets: EUAs post late rally to narrow weekly loss to 3.1%, cancelling earlier news-driven heavy selling

European carbon prices recovered from a drop to their lowest in four months on Friday morning to end the day modestly higher, after early selling had driven the market down by nearly 19% from its late January highs, with a resurgence in offering triggered by analysis that suggested the transfer of EUA supply from a special reserve into the market could depress prices.