US Stock Movement: Applied Digital surges on October 8th due to better-than-expected results and AI data center expansion

The main Brent crude oil futures contract rose by 4.00% during the day, trading at $104.94 per barrel.

Eurozone bond yields continue to rise alongside increasing energy prices; the yield on France's 10-year government bonds climbed 7 basis points to 4.939%.

According to data released by Tokyo Shoko Research on the 8th, the number of corporate bankruptcies in Japan reached its highest level since 2013 during the first half of fiscal year 2026 (April to September 2026). The statistics show that 5,373 companies with liabilities exceeding 10 million yen (with 1 US dollar equivalent to about 158 yen) went bankrupt, marking a year-on-year increase of 3.8%—the fifth straight year of growth. The total liabilities of these companies surged by 23.5% year-on-year, reaching 856.169 billion yen. Among the 10 industries surveyed, 6 sectors experienced a year-on-year rise in bankruptcies. The service sector saw the highest number of bankruptcies at 1,828 cases, up 3.7% year-on-year, followed by the construction sector with 1,035 cases. In terms of causes, 240 bankruptcies were attributed to labor shortages, up 17.1% year-on-year and hitting a record high; 436 bankruptcies were caused by rising prices, up 17.8% year-on-year. Looking ahead, Tokyo Shoko Research stated that the number of bankruptcies may further increase in the second half of the fiscal year due to rising interest rates and increased demand for corporate funds as year-end approaches. In September, the Bank of Japan raised its policy rate to around 1.25%. According to calculations by Teikoku Databank after this rate hike, if corporate loan rates rise by another 0.25 percentage points from current levels, each company would see an average annual increase of 460,000 yen in interest expenses, and operating profit would decline by an average of 1.9%. (Xinhua News Agency)

(1) The Indian rupee was defensive on Thursday, pressured by a sharp rise in oil prices and overall weakness in Asian currencies, while possible central bank intervention prevented the rupee from testing the record low set five months ago. (2) The rupee closed largely flat against the U.S. dollar near 96.78, just shy of the historic low of 96.96 reached in May. (3) Persistently high oil prices, soaring developed market bond yields, and sluggish capital flows have weighed on the rupee this year, with its year-to-date decline against the dollar exceeding 7%, ranking among the worst performers in the region. (4) Ongoing intervention by the Reserve Bank of India has provided some market relief, but traders still see no reason to be bullish on the rupee. (5) According to a hedge fund FX trader, the question now is whether the central bank will allow the 97 threshold to be breached, and whether the market will attempt to push the rupee towards the 100 level. (6) Investors believe India’s first rate hike in nearly four years is unlikely to slow or reverse the record capital outflows, with the central bank still grappling with a vicious cycle of currency depreciation and rising inflation amid an unfavorable global environment. (7) Adverse global factors intensified again, with Brent crude surging over 4% to above $104 per barrel as concerns over Middle East supplies persisted and incidents of shipping attacks in the Gulf and Strait of Hormuz increased. (8) Asian currencies fell across the board, and the U.S. dollar index hovered near a more than one-year high after Federal Reserve meeting minutes showed policymakers viewed inflation as the biggest risk to the outlook. (9) According to one agency report, currency markets have fully priced in the Fed’s hawkish stance: after expecting a 25bps rate hike to 4.25% in December, the market still anticipates a further tightening of 50bps next year, which the agency considers overly aggressive, but doubts whether the market will be willing to challenge hawkish pricing this year. (10) Further attention will be paid to the extent of intervention by the Reserve Bank of India, oil price trends, and the Federal Reserve's policy path regarding their impact on the rupee and regional capital flows.