Latest fraudulent alert - last updated on Apr 2023. To find out more information and how to protect yourself, please click here.

Investment Institute
Weekly Market Update

Take Two: Eurozone and Japan Q2 GDP revised down; Bank of Canada holds rates steady

  • 11 September 2023 (3 min read)

What do you need to know?

The Eurozone economy showed further signs of easing after GDP growth was revised down to 0.1% for the second quarter (Q2) from a previous estimate of 0.3%, following a decline in exports. However, Q1’s original estimate of zero growth was revised up to 0.1%. Meanwhile, the bloc’s services Purchasing Managers’ Index (PMI) fell to 47.9 from 50.9 in July – a figure below 50 indicates contraction. The composite index, which also includes manufacturing, fell to 46.7 in August from 48.6 in July, the fastest rate of decline since November 2020. The decline reflected a fall in new orders and a near-stalling of jobs growth.

Around the world

Japan’s Q2 GDP growth was revised down to 4.8% annualised from the preliminary estimate of 6%, as consumer and business spending fell more than expected. Elsewhere in Asia, weaker overseas demand weighed on China’s economy in August, as exports fell 8.8% compared to a year earlier. Meanwhile the Caixin services PMI showed business activity in China increased at its slowest pace in eight months with new business from overseas falling for the first time this year. The services PMI fell to 51.8 in August from 54.1 in July, while the composite edged down from 51.9 to 51.7.

Figure in focus: 5.0%

The Bank of Canada (BoC) held interest rates at 5.0% at its latest meeting, noting the economy had entered a “period of weaker growth” and that recent evidence suggested “excess demand in the economy is easing”. At both its June and July meetings the central bank hiked rates by 25 basis points in a bid to tackle inflation; in July the annual rate increased to 3.3%, up from June’s 27-month low of 2.8%. At last week’s meeting the BoC said it remained concerned about the persistence of underlying inflationary pressures and is prepared to increase the policy rate further if needed.

Words of wisdom

Digital Markets Act: The European Union is upping its efforts to “make markets in the digital sector fairer and more contestable”. The Digital Markets Act (DMA) sets out defined criteria to identify “gatekeepers” - large digital platforms providing services such as online search engines, app stores and messenger services - who will have to comply with the new laws. Consumers, for example, will be able to better control what apps they want on their smartphone and be able to remove pre-loaded software. The DMA accompanies the Digital Services Act, which went live in August and aims to curb online hate and the spread of disinformation.

What’s coming up

On Tuesday the UK reports unemployment numbers while Wednesday sees the latest US inflation numbers announced - annual inflation rose to 3.2% in July 2023 from 3% in June, the first rise in 13 months. On Thursday markets will be paying close attention to the European Central Bank when its policymakers meet to decide on interest rates; at its July meeting, it hiked its key interest rate by 25 basis points to 3.75%, its highest in 23 years. China’s closely watched industrial production numbers land on Friday.

Related Articles

Weekly Market Update

Take Two: US inflation rises more than expected; ECB hints it may cut rates soon

  • by AXA Investment Managers
  • 15 April 2024 (3 min read)
Weekly Market Update

Take Two: Eurozone inflation eases; Fed wants more data before rate decision

  • by AXA Investment Managers
  • 08 April 2024 (3 min read)
Weekly Market Update

Take Two: US inflation rises; Japan avoids recession as Q4 GDP revised up

  • by AXA Investment Managers
  • 18 March 2024 (3 min read)


    This website is published by AXA Investment Managers Asia Limited (“AXA IM HK”), an entity licensed by the Securities and Futures Commission of Hong Kong (“SFC”), for general circulation and informational purposes only. It does not constitute investment research or financial analysis relating to transactions in financial instruments, nor does it constitute on the part of AXA Investment Managers or its affiliated companies an offer to buy, sell or enter into any transactions in respect of any investments, products or services, and should not be considered as solicitation or investment, legal, tax or any other advice, a recommendation for an investment strategy or a personalised recommendation to buy or sell securities under any applicable law or regulation. It has been prepared without taking into account the specific personal circumstances, investment objectives, financial situation, investment knowledge or particular needs of any particular person and may be subject to change at any time without notice. Offering may be made only on the basis of the information disclosed in the relevant offering documents. Please consult independent financial or other professional advisers if you are unsure about any information contained herein.

    Due to its simplification, this publication is partial and opinions, estimates and forecasts herein are subjective and subject to change without notice. There is no guarantee such opinions, estimates and forecasts made will come to pass. Actual results of operations and achievements may differ materially. Data, figures, declarations, analysis, predictions and other information in this publication is provided based on our state of knowledge at the time of creation of this publication. Information herein may be obtained from sources believed to be reliable. AXA IM HK has reasonable belief that such information is accurate, complete and up-to-date. To the maximum extent permitted by law, AXA IM HK, its affiliates, directors, officers or employees take no responsibility for the data provided by third party, including the accuracy of such data. This material does not contain sufficient information to support an investment decision. References to companies (if any) are for illustrative purposes only and should not be viewed as investment recommendations or solicitations.

    All investment involves risk, including the loss of capital. The value of investments and the income from them can fluctuate and that past performance is no guarantee of future returns, investors may not get back the amount originally invested. Investors should not make any investment decision based on this material alone. 

    Some of the services listed on this Website may not be available for offer to retail investors.

    This Website has not been reviewed by the SFC. © 2023 AXA Investment Managers. All rights reserved.