Take Two: Stocks endure fresh volatility; China takes the lead in green bond issuance

What do you need to know?

Stock markets endured a volatile week amid technology company valuation concerns and a disappointing US jobs report. A survey from outplacement firm Challenger, Gray & Christmas concluded that employers cut 153,074 jobs last month, versus 55,597 in October 2024. Markets were also paying close attention to a court challenge over the legality of US President Donald Trump’s tariffs. Over the week to Thursday’s close the S&P 500 and the tech-heavy Nasdaq were down -1% and -2% respectively, while the MSCI AC Asia index was flat and MSCI Europe was off -1%. However, year to date technology stocks’ performance remains firmly in positive territory with the Nasdaq up 20%*.

* Source: FactSet, in US dollar terms. Data as of 6 November 2025

Around the world

Eurozone business activity grew at its fastest rate in October since May 2023, as service providers enjoyed an upswing in demand. The bloc’s composite Purchasing Managers’ Index (PMI), which covers both manufacturing and services activity, rose to 52.5 from 51.2 in September – a reading above 50 indicates expansion. The US composite PMI edged up to 54.6 from 53.9, boosted by an increase in new business growth, while Japan’s composite PMI increased slightly to 51.5 from 51.3, after slower growth in services was offset by a softer fall in factory output. Elsewhere, as expected, the Bank of England held interest rates at 4%.

Figure in focus: $70.3bn

China has issued a record $70.3bn of green bonds so far this year, surpassing its western counterparts for the first time, according to Financial Times (FT) calculations based on LSEG data. The world’s second-largest economy accounted for more than 17% of worldwide green bond issuance, compared to the US at 3%, the FT said. Green bonds are debt instruments where the proceeds are used to support environmentally sustainable projects. China is a global leader in hydropower, renewable energy storage and transmission, and green hydrogen infrastructure, and aims to reach carbon neutrality by 2060. 

Words of wisdom

Rare earths: A group of 17 elements, which are integral to the manufacturing of many modern technologies including smartphones, lasers, electric vehicles and even cancer treatment drugs. They are also difficult and expensive to mine. China is the world’s largest producer of rare earths, which have become a key factor in its ongoing tensions with the US. China recently tightened export controls on rare earths but agreed to delay the changes by a year, while the European Union said last week it had reached an agreement with China on rare earths.

What’s coming up?

The United Nations Climate Change Conference COP30 begins on Monday in Brazil, where world leaders will aim to strengthen action against global warming. On Tuesday, the UK issues its unemployment rate, and Germany publishes its ZEW Economic Sentiment Index. The UK reports third quarter (Q3) GDP growth data on Thursday – in Q2, its economy grew by 0.3%. The Eurozone follows with its own Q3 GDP growth on Friday; the bloc’s economy expanded 0.1% in Q2. Also on Friday, China issues industrial production and unemployment numbers.

Read more insights and views at the AXA IM Investment Institute