The Paris Stock Exchange still tossed about by the war in Ukraine

The star CAC 40 index lost 14.94 points to 6,355.00 points.

The day before, it had risen by 1.75%.

The Parisian rating had started the day down sharply, touching 6,200 points before bouncing back.

It had gone back into the green as the end of the session approached, before falling back more than 1% after the declaration that Russian President Vladimir Putin did not find Ukraine "serious" in its desire to find compromise, according to financial news agency Bloomberg.

Russia has also initiated the procedure of "exiting the Council of Europe".

"The markets remain very dependent on the flood of information on Ukraine", commented Guillaume Chaloin, head of equity management at Meeschaert Amilton AM.

Russian and Ukrainian delegations resumed their talks on Tuesday, as Russian strikes increased on kyiv and the Russian offensive spread across the country.

Earlier, investors had also worried about the upsurge in Covid-19 cases in China.

The authorities have decreed confinements in many cities, even entire regions, including the metropolis of Shenzhen, the technological center of the country.

This may have surprised investors "who thought that China was going to abandon the + zero Covid + policy after the Olympics", estimates Mr. Chaloin.

In addition, it feeds "doubt" on "the effectiveness of Chinese vaccines".

Conversely, the indices were supported by the new sharp drop in commodity prices, particularly oil.

At the Paris close, the two reference prices fell by more than 5%, Brent from the North Sea remaining just above 100 dollars a barrel.

Lower commodity prices “could reduce the strength of headwinds for the global economy,” including already very high inflation in the United States and Europe, said Oanda analyst Craig Erlam.

The pace of inflation is at the heart of the US Federal Reserve (Fed) monetary policy meeting which began on Tuesday.

The Fed is expected to raise its key rate to fight inflation, the highest since 1982. It will also say how many rate hikes it expects this year and next.

Luxury penalized by China

Luxury stocks, a heavyweight on the Parisian coast and very present in Asia, were penalized due to the confinements announced in China.

Hermès lost 3.13% to 1,113.50 euros, LVMH 1.45% to 590.00 euros and Kering 1.31% to 557.20 euros.

Miners in difficulty

The drop in commodity prices particularly affected mining stocks.

ArcelorMittal lost 1.62% to 27.37 euros, Eramet 3.28% to 120.80 euros.

© 2022 AFP