KUALA LUMPUR, May 21 (Bernama) -- Bursa Malaysia ended at its intraday low on Thursday as investor sentiment remained cautious amid ongoing foreign outflows, although the recent weakness may present bargain-hunting opportunities in fundamentally sound blue-chip counters. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 9.33 points, or 0.54 per cent, to 1,708.36, from yesterday’s close of 1,717.69. The benchmark index, which opened 3.74 points higher at 1,721.43, hit an intraday high of 1,722.50 in early trade before losing momentum for the rest of the day. Market breadth was negative, with losers outpacing gainers 656 to 508, while 565 counters were unchanged, 989 untraded and 32 suspended. Turnover fell to 3.49 billion units worth RM3.70 billion compared with 4.15 billion units worth RM4.29 billion on Wednesday.
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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