Germany April unemployment change 20k vs 4k expected

Germany’s April labour data showed a weaker-than-expected reading: unemployment rose by 20,000 (consensus +4,000) and the jobless rate was 6.4% (vs 6.3% expected), with March revised up to 6.4%. The total unemployed now stands at about 3.006 million and the jobless rate is the highest since July 2020. Markets are likely to view the report as a negative for cyclical risk assets such as the Germany 40 index and the euro, reinforcing concerns over a softening domestic economy and potentially reducing the bar for the ECB to slow further tightening. Short-term bearish pressure on German equities and EUR-sensitive assets is the probable market reaction.