Germany Q1 GDP Hits +0.3% Beat, Unemployment Steady at 6.4% High

Germany's Q1 GDP rose 0.3% q/q, topping the 0.2% forecast and prior 0.2%, while April unemployment held steady at 6.4%—the highest since July 2020—delivering mixed signals for the Germany 40. The upbeat growth followed a sharp March retail sales drop of -2.0% m/m versus -0.1% expected on April 30, after April preliminary CPI undershot at +2.9% y/y (exp. +3.0%) and HICP +2.9% (exp. +3.1%) on April 29. Resilient GDP tempers recession fears and soft demand, fostering a defensive-to-bullish tilt in the index ahead of ECB's rate hold.