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Fuels and carbon dioxide are the main cause of forward curve contracts falling.

European forward curve contracts fell on Thursday, following lower gas and carbon prices. This was after President Donald Trump announced sweeping new tariffs that could cause concern in the manufacturing industry.

Analysts at Energi Danmark say that the European carbon market has a bearish outlook, as tariff concerns, uncertainties about possible market reforms, and technical signals are all contributing to a negative trend. Further price drops should be expected.

They said that further price drops should be expected on Thursday as part of a general downward trend. "The (power) market is likely to follow the fuels and carbon markets down. The fears over the US tariffs' consequences for the German economy are causing some concern."

Trump's decision to impose a tariff of 20% on the majority of goods imported from Europe has intensified the global trade war, which threatens to fuel inflation and stall economic growth.

As of 8:39 GMT, the German power contract for 2026 was down 3.5% at 62 euros/MWh. The French baseload contract is now down 3.5% at 85 euro/MWh.

Carbon permits in Europe fell by 2.3%, to 66.98 euro per metric ton.

On the European spot side, day-ahead contract splits were made as German wind power was expected to drop by half. The French wind supply would also be reduced by about the same amount.

The German baseload electricity price for the day ahead rose by 13.1%, to 87 Euros/MWh. Meanwhile, French baseload energy on Friday fell 10% and was 38.25 Euros/MWh.

Data compiled by LSEG shows that the German wind output will drop by 6 gigawatts to 5.9 GW this Friday. In France, it is predicted to fall by 1.6 GW and reach 6.3 GW.

According to LSEG, the power usage in Germany will drop by 1.2 GW and reach 54.5 GW. In France, it is expected to fall by 1.1 GW and reach 47 GW.

Two reactors were taken offline for maintenance, resulting in a five-point drop in French nuclear availability. ($1 = 0.9098 euro) (Reporting and additional reporting by Vera Eckert, Editing by RashmiAich)

(source: Reuters)