Spot gold surpasses $4,130/oz, up 0.46% intraday

⑴ The correlation between the eurozone bond market and energy prices has significantly weakened. ⑵ One month ago, the two-month correlation coefficient between the German 5-year government bond yield and the yield model for German 5-year bonds based on energy prices was around 0.96; it has now dropped to about 0.87. ⑶ This breakdown in correlation has occurred amid a general weakening of the bond market, and recent fluctuations in the spread of French government bonds have further intensified market volatility. ⑷ As with all market models based on numerical values, this model performed robustly for about two months before suddenly failing. ⑸ The relationships will continue to be monitored, and there may be attempts to construct new, similar models. ⑹ The model consists of four parts near-month Netherlands-delivered natural gas futures, two parts near-month Brent crude oil futures, and one part Citigroup Economic Surprise Index for the eurozone. ⑺ The weakening correlation means that energy prices have less explanatory power for eurozone bond yields, and the market's focus has shifted more toward fiscal outlook and spread fluctuations. Going forward, attention should be paid to the trend of French spreads and new developments in the energy market.

The US dollar remains strong against major currencies, supported by elevated US Treasury yields and market expectations for the Federal Reserve to maintain a hawkish rate policy. Danske Bank strategists anticipate that as investors demand higher risk premiums, yields on 10-year and 30-year US Treasury bonds may rise to 6%. The relative strength index stands at 73.60, which has entered the overbought territory, indicating that the dollar index's momentum is robust, although the potential for further gains may be limited. However, no clear reversal signals have been observed yet.

October 8 - ** Data center service provider Applied Digital (APLD.O) saw its stock rise 3.57% in pre-market trading to $24.66 ** The company’s Q1 revenue (link) surged more than fourfold to $341.9 millions, far surpassing analyst estimates of $133.8 millions ** Northland Capital Securities noted that APLD’s revenue and cash flow should increase significantly in the coming years as contracted data center capacity becomes operational and starts generating income ** Net loss attributable to common shareholders widened from $18.5 millions (7 cents/share) a year ago to $221 millions (76 cents/share) ** According to data compiled by London Stock Exchange Group (LSEG), the average rating from 17 analysts covering the stock is “Buy”, with a median target price of $70.00, representing an upside of about 194% from the current price ** Year-to-date, the stock is down about 2.9%, while the Nasdaq Index .IXIC is up 18.5% over the same period. (For the convenience of non-English speakers, Reuters automatically translates its reports into several other languages. Since automated translation may contain errors or lack necessary context, Reuters does not guarantee the accuracy of automated translation and provides it only as a convenience. Reuters assumes no liability for any damage or loss resulting from the use of automated translation.)

WTI crude oil rose above $91 per barrel for the first time since October 2, with a daily increase of 3.02%.