Skip navigation Scroll to top
Scroll to top

LGT Navigator: La France a voté – Macron secures second term in office

April 25, 2022

In the race for the highest office in Europe's second-largest economy, incumbent Emmanuel Macron prevailed over right-wing challenger Marine Le Pen with 58.5% vs. 41.5%. Macron guarantees Europe a certain political and economic stability in troubled and difficult times. On the financial markets, the anticipation of the monetary policy stance of the major central banks, the still muddled situation in Ukraine, and inflation and economic concerns remain the defining issues. However, further impetus will be provided this week by further quarterly reports from major listed companies.

La France a voté – Macron secures second term in office

On the New York Stock Exchange the expectation of rapidly and sharply rising interest rates dominated on Friday, after recent statements by Federal Reserve Chairman Jerome Powell had held out the prospect of a more aggressive inflation defense, respectively larger interest rate steps. The Dow Jones Industrial fell before the weekend by almost -2.82% to 33,811.40 points and thus recorded a full minus of almost two percent for the week. The S&P 500 fell by -2.77% to 4,271.78 points and the technology exchange was down almost four percent. At the same time, the yield on ten-year U.S. government bonds remained at 2.86%, close to the highest level since the end of 2018 of almost three percent reached last week.

In Asia's equity markets, the prospect of fast-rising key interest rates in the US makes for a clearly negative start to the week. In Tokyo, the 225-stock Nikkei index loses around -2% and in Hong Kong, the Hang Seng index posts a daily loss of around -3%.

The new week is dominated by the ongoing corporate reporting season, US GDP data due on Thursday, European inflation figures due on Friday and the Bank of Japan's monetary policy meeting.

Purchasing managers' indices provide mixed signals

In the eurozone, private sector sentiment improved again somewhat in April. This was mainly due to a more optimistic assessment of service companies. The S&P Global purchasing managers' index improved by 0.9 points to 55.8, while analysts had expected a decline to 53.9 points.

In the UK, however, companies surveyed in April were more pessimistic. The Purchasing Managers' Index (PMI Composite) for the services and industrial sectors fell more sharply than expected from 60.9 to 57.6 points (consensus 58.7). Sentiment was dampened by the rise in the cost of living, the Ukraine conflict and rising interest rates, S&P Global Chief Economist Chris Williamson said.

Bundesbank fears recession in case of energy embargo

Germany's Bundesbank believes that a comprehensive energy embargo against Russia would plunge the German economy into recession. Accordingly, real gross domestic product would decline by around two percent in the current year compared to the previous year, the central bank states in its current monthly report. But not only in the short term, but also in the following two years, a supply freeze would burden the German economy and lead to growth losses. In addition, higher inflation must be expected over a longer period due to rising energy prices, the Bundesbank commented.


Economic Indicators April 25

MEZ Country Indicator Last period
10:00 GE Ifo Business Climate (April) 90.8
14:30 US Chicago Fed National Activity Index (March) +0.51


Earnings Calender April 25

Country Company Period
SZ Roche  Q1 Sales
GE Deutsche Boerse Q1 
FR Vivendi Q1 Sales
NL Philips Q1 
US Coca-Cola Q1
US Whirlpool Q1 


LGT helps you make informed investment decisions

All about global economic and market trends at a glance

Subscribe to LGT's research newsletters

You can also follow us on Facebook or LinkedIn – or visit MAG/NET and discover interesting background articles. If you have questions, a consultant from the bank will be happy to help you.

Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi, E-Mail:
Source: LGT Bank (Switzerland) Ltd.

Risk Disclosure (Disclaimer)
This publication is an advertising material / marketing communication. This publication is for your information only and is not intended as an offer, solicitation of an offer, or public advertisement to buy or sell any investment or other specific product. Its content has been prepared by our staff and is based on sources of information we consider to be reliable. However, we cannot provide any confirmation or guarantee as to its being correct, complete and up to date. The circumstances and principles to which the information contained in this publication relates may change at any time. Information that has been published should therefore not be understood as implying that no change has taken place since its publication or that it is still up to date. The information in this publication does not constitute an aid for decision-making in relation to financial, legal, tax-related or other consulting matters, nor should any investment decisions or other decisions be made on the basis of this information alone. It is recommended that advice be obtained from a qualified expert. Investors should be aware that the value of investments can fall as well as rise. Positive performance in the past is therefore no guarantee of positive performance in the future. Investments in foreign currencies are also subject to fluctuations in exchange rates. We disclaim all liability for any loss or damage of any kind, whether direct, indirect or consequential, which may be incurred through the use of this publication. This publication is not intended for persons subject to legislation that prohibits its distribution or makes its distribution contingent upon an approval. Any person coming into possession of this publication shall therefore be obliged to find out about any restrictions that may apply and to comply with them. In line with internal guidelines, persons responsible for compiling this report are free to buy hold and sell the securities referred to in this report.