Markets affected by new coronavirus concerns

Focus week 25: A rising infection count in both the USA and China has caused renewed uncertainty in the markets. The fear of a second wave of coronavirus has been a key topic in the last week.

Here and now

In the wake of the extremely large price jump the previous week, there were falling prices in the Nordic energy market last week. The downward adjustment was primarily a reaction to the markets feeling that the increases earlier in June were a little exaggerated. Record low spot prices, a falling carbon emissions allowance market and substantial snow melting in Norwegian mountains did, however, support the price falls as the week progressed. On Monday, the Q3-20 contract closed at EUR 12.90/MWh, a fall of EUR 2.30/MWh for the week. The YR-21 contract has fallen by EUR 1.85/MWh and now costs EUR 23.65/MWh.

Read Focus here.