EU carbon continues to fall after UK auction

LONDON (Reuters) - European carbon emissions futures continued to fall on Tuesday following Britain's second emissions permit auction.

Benchmark EU Allowances for December delivery fell 35 cents or 2.93 percent to 11.59 euros ($15.80) a ton at 1054 GMT, with volume at 3,241 lots.

Trade opened cautiously ahead of the auction, which began at 0800 GMT.

The British government sold 4 million permits in the country's second auction at 10.98 euros a ton, raising 43.92 million euros for the UK Treasury [ID:nLO306290]. The auction ended at 1000 GMT.

"When the result hit the wires the market upticked but it has softened a bit," said an emissions trader.

U.S. light crude edged down toward $53 a barrel as investors took profits after a 3 percent rise in the previous session that was supported by a surge on global stock markets on a new U.S. banking rescue plan.

German Cal '10 baseload power on the EEX inched down 30 euros or 0.59 percent to 50.65 euros per megawatt hour.

Kyoto-backed certified emissions reductions were down 27 cents or 2.51 percent at 10.50 euros a ton. The EUA-CER spread was at 1.02 euros.

($1=.7337 euros)

(Reporting by Nina Chestney; Editing by Mike Nesbit)