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Friday, November 2, 2012

Warsaw Market & Carbon Watch - Friday 2 October

Greetings from Kiev!  Here is this morning’s Ukrainian stock performance summary, from the Warsaw Stock Exchange, based on the prior trading day's closing bell.  The Warsaw Stock Exchange was closed yeserday for trading, while the European markets closed on a positive note (FTSE +1.37%, STOXX +1.21%, CAC +1.35%, DAX +1.03%, IBEX +0.55%) along with the U.S. markets (DOW +1.04%, S&P +1.09%, NASDAQ +1.44%).

Carbon Trading

ICE daily CER price flopped to 1.00 EURO (-17.36%) on the back of a failed agreement by EU Member States to limit excess AAUs and ERUs from affecting the EU ETS post 2012.  The failure means it looks bad for anything meaningful happening in Doha.  It's not a huge surprise but it's a significant disappointment as carbon regulators once again fail to miss an opportunity to miss an opportunity to save their market.  There are signs that post Hurricane Sandy the USA is finally taking its head out of the sand regarding climate change, and the natural disaster provided several affected states with a "moment of clarity" via Mother Nature's rough intervention.  But this is a long story that's just beginning, so while one can expect higher than usual hype around America's remarks at Doha later this year, and some trading optimism around that... the real price swings will be downwards due to EU decision paralysis and probably negative statements from Russia, the CIS and countries such as Japan and/or China.