Stocks ease as gloomy data, virus shocks dampen US stimulus hopes

Stocks ease as gloomy data, virus shocks dampen US stimulus hopes

Stocks ease as gloomy data, virus shocks dampen US stimulus hopes

2 hours ago

Employees at the Volkswagen assembly line in Wolfsburg, Germany. Volkswagen reported a nearly 50% drop in its 2020 adjusted operating profit on Friday. File/Reuters

Global shares slipped off record highs on Friday as gloomy data reminded investors of the struggles facing the economic recovery, curbing a rally fuelled by hopes of US stimulus by newly inaugurated President Joe Biden.

European and Chinese stock markets retreated on Friday as the focus switched back to the economic impact of fresh virus shocks.

Wall Street's main indexes opened lower on Friday after hitting record levels, as shares of blue-chip technology stalwarts Intel and IBM tumbled following their quarterly results.

Sentiment in Europe was already more cautious after Thursday's European Central Bank meeting, in which the bank's message was perceived as more hawkish than expected.

The yield on Italian 10-year benchmark bonds touched its highest since early November on reports that Prime Minister Giuseppe Conte may be tempted by the prospect of a snap election.

The Euro STOXX 600 was 1% weaker, heading for its worst daily showing of the year so far, as investors digested weaker flash PMI readings for January. Lockdown restrictions to contain the