(Sharecast News) - European shares fell by midday on Wednesday as a larger-than-expected rise in German unemployment and cut in global job creation forecasts dampened sentiment.
The pan-regional Stoxx 600 index was down 0.31% at 550. Germany's DAX, which hit a record intra-day high in the morning was down 0.49%.

In economic news, German unemployment rose by a more-than-expected 33,000 in May, according to official data published on Wednesday.

The number of unemployed people in Europe's biggest economy now sits at 2.963 million on a seasonally adjusted basis. Analysts had expected a rise of 10,000.

"The labour market is not getting the tailwind it needs for a trend reversal. Therefore, we expect unemployment figures to continue to rise in the summer," said labour office head Andrea Nahles.

Meanwhile, the United Nations labour agency now expects 53m jobs to be created this year, seven million less than previously forecast, as the global economy grapples with trade wars and geopolitical tensions.

Jobs closely linked to American consumer demand are increasingly at risk due to trade tensions, the International Labour Organisation found. Canada and Mexico have the highest share of jobs exposed, it added, at 17.1%. But the Asia Pacific region is where most of the vulnerable jobs, 56 million, are concentrated.

The ILO also lowered its prediction for global economic growth to 2.8%, down from 3.2%.

In equity news, weapons makers were in focus after the European Union on Tuesday approved the creation of a €150bn landmark fund to boost defence capabilities amid tensions with Russia and a wavering of US commitments in the region.

The fund is designed to overcome national barriers by funding joint defence projects across EU nations, with a strong emphasis on supporting the European defence industry.

Shares in Leonardo, Thales, Dassault, Rheinmetall, BAE, Saab and Rolls-Royce were all higher on the news.

Kingfisher shares fell after the UK and French home improvement retailer released first-quarter results.

Reporting by Frank Prenesti for Sharecast.com

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