EU Carbon Market Shields Industry: Free Allowances Extended to 2038

The EU's decision to extend free carbon permits until 2038 could have a positive short-term impact on European industrial stocks by easing cost pressures. However, the move risks slowing the pace of the green transition, creating uncertainty in clean energy and carbon price-sensitive sectors. For countries trading with the EU, such as Turkey, the competitiveness of exporting firms may be preserved in the near term, but concerns over long-term compliance costs could limit market sentiment. Overall, markets are pricing this development in a balanced manner, awaiting further details to determine a clear direction.

The news that free allowances in the EU carbon market are being extended to 2038 can be seen as a development that reduces cost pressure for companies operating in carbon-intensive sectors such as SASA. In technical indicators, the RSI at 36.9 is near the oversold zone, and although the price is below the SMA20, remaining above the SMA50 signals medium-term support. The MACD is below the signal line and in negative territory, but following a 3.5% decline in the last 24 hours, the positive impact of the news could create short-term recovery potential. The positive sector sentiment from the news may partially offset the current technical weakness.

The news involves the extension of free allowances for industry in the EU carbon market until 2038. This development could reduce cost pressure for steel producers such as EREGL. Technically, the RSI is at 51.5, indicating a neutral zone, while the MACD is below the signal line but remains positive. Although the price closed below the 20-day moving average (43.09), it is holding above the 50-day moving average (41.52). In the short term, there is potential for a recovery driven by the positive news, but cautious optimism prevails given yesterday's 2.95% decline.

The news involves the extension of free allowances for industry in the EU carbon market until 2038. This could help keep carbon costs low and preserve profitability for industrial companies. It is considered a positive development for holdings operating in energy-intensive sectors such as KCHOL. Although the RSI technical indicator is approaching overbought territory at 67.7, the MACD remains above its signal line and positive. In the short term, the stock has the potential to continue its upward movement.