Most of the interest in the market shown yesterday was on the potential takeover of Scottish Power although RWE and E.ON are rumoured to have said it is not us it is more than likely that they will make a counter bid to the favourites Scottish and Southern.

There are still rumours that British Energy have some selling to do in the market and with liquidity as low as it is, many players have decided that they have done what they need to do and so are locking up shop between now and Christmas (it will only get worse in December).

That having been said a dramatic rise in price is looking distinctly unlikely and the market will wander aimlessly for the next couple of weeks. The drop in emissions prices needs to feed in and this may happen today or early next week.