KUALA LUMPUR, Aug 18 (Bernama) -- Bursa Malaysia ended higher on Tuesday, outperforming most regional markets as investors continued to rotate towards commodity and plantation-related stocks, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 7.47 points, or 0.43 per cent, to 1,733.36 compared with Monday’s close of 1,725.89. The benchmark index opened 1.63 points higher at 1,727.52, and fluctuated between 1,723.60 and 1,734.53 throughout the day. On the broader market, losers outpaced gainers 762 to 438, while 576 counters were unchanged, 1,075 untraded and 16 suspended. Turnover expanded to 3.74 billion units valued at RM2.91 billion from 3.45 billion units valued at RM2.74 billion on Monday.
Quick Summary
German unemployment crossed 3 million, the highest level in 12 years
Jobless rate rose to 6.6%, highlighting weak labour momentum
GDP grew 0.3% in Q4, beating expectations despite trade turmoil
Inflation ticked up in several states, keeping price pressures in focus
What’s Happening in the Labour Market
Germany’s unemployment climbed sharply at the start of the year, underscoring the lagging impact of recent economic stagnation.
Unemployed: 3.08 million (+177,000 vs December)
Unemployment rate: 6.6% (seasonally unadjusted)
Seasonally adjusted rate: 6.3%, unchanged
Labour office head Andrea Nahles said momentum remains weak, with seasonal factors driving much of the rise.
Economy Holds Up Better Than Expected
Despite job market softness, Germany’s economy showed resilience.
Q4 GDP: +0.3% q/q (vs 0.2% expected)
Annual growth: +0.2%, confirming initial estimates
The statistics office said the economy ended 2025 in positive territory, despite a turbulent year for exports.
Chancellor Friedrich Merz has pledged higher infrastructure and defence spending to revive growth, though its impact on jobs is taking longer to materialise.
Policy Shifts and Growth Challenges
Economy Minister Katherina Reiche said Germany must develop new growth engines, warning that traditional export strengths are no longer enough.
Germany has cut its growth forecasts for this year and next, reflecting ongoing structural challenges.
Inflation Back in Focus
Preliminary data showed January inflation rose in five German states, including:
North Rhine-Westphalia
Bavaria
Baden-Wuerttemberg
State readings ranged between 2.0% and 2.3%. Economists expect national inflation at around 2.0%, unchanged from December.
Bottom Line
Germany’s economy is growing again — but the labour market hasn’t caught up.
Rising unemployment alongside modest GDP growth highlights an uneven recovery, with policy support still working its way through the system.
Key Takeaways
Unemployment at 12-year high signals labour market strain
GDP growth beats forecasts, showing resilience
Inflation remains sticky around 2%
Structural reforms and new growth drivers are critical
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