European Markets Mixed

By late morning, the pan-European Stoxx 600 index had fallen slightly below the flatline. Tech stocks fell 1.7 percent. Moreover, essential resources rose 2.4 percent.

Orpea, a French care home company, rose 6.3 percent to lead the European blue-chip index, as investors snapped up shares on the cheap following persistent sell-offs in response to allegations of malpractice in care homes.

Ocado shares fell more than 10% after the British online supermarket disappointed investors with its earnings report before the bell, with core earnings weighed down by tech investment.

On Thursday, the United States Labor Department will release consumer price index figures for January, closely watched by global investors. The reading comes on the heels of a stronger-than-expected January jobs report, which has fueled speculation that the Federal Reserve of the United States will be more aggressive in raising interest rates.

According to Bank of America, the Fed could raise interest rates by seven quarter-points this year.

Stock index futures in the United States crept higher in premarket trading on Tuesday. At the same time, shares in Asia-Pacific struggled for direction in Tuesday trade, with Chinese markets leading regional losses.

Meta Stock Hits 52-Week Low

Meta Platforms Inc. has stated that it is considering discontinuing Facebook and Instagram in Europe.

The threat stems from European regulators’ plans to draft new legislation governing EU citizens’ user data transfer across the Atlantic.

Meta’s warning sent its stock FB down 5% in trading Monday. The stock had plummeted to a 52-week low after reporting risky earnings last week.

The passage is similar to what has appeared in the Facebook parent company’s earnings report in recent years. It mirrors language in earnings reports from dozens of other companies, including Apple Inc. AAPL, -0.42 percent, Alphabet Inc. GOOGL GOOG, and Salesforce.com Inc.’s CRM, -1.03 percent Slack.

Axel Voss, a European lawmaker who helped draft EU data protection legislation, responded on Twitter TWTR, -2.44 percent. Meta cannot simply blackmail the EU into lowering data protection standards; leaving the EU would be their loss. The issue has been brewing since July 2020, when the European Court of Justice ruled that the data transfer standard between the US and the EU does not adequately protect the privacy of European citizens. According to the Wall Street Journal, Ireland’s Protection Commission issued a preliminary order to Facebook to stop transferring user data from the EU to the US in August 2020.