Seagate Technology fell 6.5% despite joining the corporate cavalcade to report better results for the last quarter than expected. He also gave revenue and profit forecasts for the current quarter that matched or exceeded those of Wall Street. Analysts said much of that optimism may have already been built into the stock.
Markets have mostly rallied recently in hopes that COVID-19 vaccines will lead to a powerful economic recovery later this year, as daily life moves closer to normal. Hopes are also high that Washington will provide another dose of stimulus to the economy now that the White House and both houses of Congress are under the sole control of the Democrats.
But the coronavirus pandemic is getting worse and doing more damage to the economy day by day. In Europe, a survey of purchasing managers showed that economic activity contracted in January in the euro area to 19 countries. Data suggests that the eurozone economy is expected to shrink again in the first three months of this year.
On European stock markets, the French CAC 40 fell 0.7% and the German DAX lost 0.2%. The FTSE 100 in London fell 0.5%.
In China, where the pandemic began in late 2019, the government reimposed travel controls after outbreaks in Beijing and other cities. A spike in infections has prompted authorities to call on the public to avoid travel during the February Lunar New Year holidays, normally the most important family event of the year.
This has “raised concerns among investors who, after a slow start to the global vaccine rollout, are debating how quickly economies can immunize the most vulnerable and resume business as usual,” said Stephen Innes. d’Axi in a report.
Shanghai shares slipped 0.4% on Friday, while Hong Kong’s Hang Seng fell 1.6%. Japan’s Nikkei 225 fell 0.4% and South Korea’s Kospi fell 0.6%.