Euro Markets: EUAs drop below major level amid profit taking as EU makes first hike to auction supply

European carbon allowance prices dropped back below an important psychological level on Monday amid a welter of profit taking after the market had risen to a nearly 16-week high on Friday, as daily auction volumes rose and are expected to increase further next month, while fading hopes for a quick ceasefire agreement in the Strait of Hormuz also added to bearish pressure.