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Market volatility surged on Monday, as megacap technology stocks plummeted on AI concerns. Advisors and investors looking to diversify their commodity portfolio or those seeking non-correlated return potential in a volatile environment would do well to consider European carbon allowances.
The European Union continues to cross major milestones as it transitions away from fossil fuels and to renewable energies. Investors looking to harness ongoing energy transition through the EU's regulated carbon market should consider the KraneShares European Carbon Allowance Strategy ETF (KEUA).
European carbon allowance prices plummeted last week, dropping to six-month lows. Analysts believe that prices rebounded once they hit key technical levels, reported KraneShares in the Climate Market Now blog.
Investors looking for opportunity in the second half would do well to keep an eye toward European carbon allowances. Trend-following signals, ongoing geopolitical turmoil, and recent trading action make the KraneShares European Carbon Allowance Strategy ETF (KEUA) a fund to watch as it heads into the fall.
European Union carbon allowance prices remain muted this year, but summer months could result in increased volatility. Investors looking to capture long-term opportunity in Europe's carbon market at current prices would do well to consider the KraneShares European Carbon Allowance Strategy ETF (KEUA).
The European Union Carbon Border Adjustment Mechanism (CBAM) continues to make headlines as global industries grapple with the new mandates. While creating industry challenges, Luke Oliver of KraneShares discussed the opportunities for investors.
2024 has not been a particularly kind year for European carbon allowance (EUA) prices. Earlier this week, the European Commission noted that in 2023, Carbon emissions under the EU's emissions trading system dropped by a record 15.5%.
So far, 2024 has not been an ideal year for European carbon prices, but hope may be on the horizon. Last week, European prices posted the first week-on-week gain of the year, trading upwards of €58/tonne in some instances.
Regulated carbon markets vary in their outlooks this year. California continues to benefit from strong fundamentals, while the European Union faces ongoing diminished economic activity and a bearish forecast.
KraneShares' European carbon allowance ETF has posted impressive returns in the past week. The KraneShares European Carbon Allowance ETF (KEUA) is up 7.5% in the past one week, bringing its one-month return to 3.1%.
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