The Paris Stock Exchange ended down 0.23% on Tuesday, still subject to sudden movements on information concerning the war in Ukraine, where negotiations are continuing with an outcome that remains uncertain.
The star CAC 40 index lost 14.94 points to 6,355.00 points. The day before, it had increased by 1.75%.
The Parisian rating had started the day down sharply, reaching 6,200 points before bouncing back.
It was back in 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 compromises, according to financial news agency Bloomberg.
Russia has also initiated the exit procedure from 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 multiplied on kyiv and the Russian offensive spread across the country.
Tuesday morning, four people were removed dead and forty others released alive from a building in a western district of the capital kyiv, according to local authorities.
Earlier, investors were also concerned about the resurgence of 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 China was going to abandon the policy zero covid after the Olympics, says Mr. Chaloin. Moreover, it feeds doubts about 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%, with 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 inflation already very high in the United States and Europe, said Craig Erlam, an analyst at Oanda.
The pace of inflation is at the heart of the monetary policy meeting of the US Federal Reserve (Fed) which began on Tuesday and whose conclusions will be published after the end of the Paris session on Wednesday.
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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, and update its gross domestic product (GDP) growth forecasts. , inflation and unemployment.
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.
Herms lost 3.13% 1,113.50 euros, LVMH 1.45% 590.00 euros and Kering 1.31% 557.20 euros.
Miners in difficulty
The drop in commodity prices has particularly affected mining stocks. ArcelorMittal lost 1.62% 27.37 euros, Aperam 3.32% 41.09 euros and Eramet 3.28% 120.80 euros.