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The CAC 40 index is a benchmark made up of the 40 largest companies by market capitalisation that are listed on the Euronext Paris exchange. This index is considered by investors as the most representative for tracking the overall performance of the equities market in France. Companies within the CAC 40 composition account for about 20% of market capitalisation in Europe, which shows how influential it is. It’s also tightly connected to the Euro Stoxx 50 index, where they have almost 20 companies in common. CAC often catches the attention of international investors, with almost half of CAC 40 shares held by non-residents and a quarter owned by investors outside of the Eurozone.
There are different accounts available at ZFX, with various leverages and minimum deposits. Finally, it is worth noting that ZFX offers its clients to trade stocks, indices, forex and commodities. Thus, the monetary policy of central banks, or significant economic statistics such as GDP or the unemployment rate, can directly impact the CAC 40 price. Since the index includes 40 stocks, any news concerning these companies can also influence the CAC – especially when bad news or good news influences an entire sector. As of 30 September, French conglomerate LVMH Moët Hennessy Louis Vuitton was the most heavily weighted company in the CAC 40, making up for 11.73% of its price. The index’s top 10 holdings account for 58.1% of its price and performance, meaning that this is a heavily concentrated equity benchmark.
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Terms of Service apply. It was a group of brokers that operated the Paris Stock Exchange since at least the 16th century. Stay on top of upcoming market-moving events with our customisable economic calendar. It is also interesting to note that professional analysts are positive on almost all of the CAC40 stock that make up the index, which means that the analyst consensus is very clearly bullish. Recently, the CAC 40 posted a correction from the upper bound of this channel, which does not call into question the uptrend.
- The CAC 40 index represents the 40 largest equities listed on the Euronext Paris.
- It was a group of brokers that operated the Paris Stock Exchange since at least the 16th century.
- You should make sure you understand the companies you’re investing in, their specific risks, and make sure any shares you own are held as part of a diversified portfolio.
- Only Hermès does not have a buy recommendation, as it has a neutral rating.
- The CAC 40 is used as a benchmark index for funds investing in the French stock market and also gives a general idea of the direction of the Paris Bourse.
CAC 40 stands for Cotation Assistée en Continu, which translates in English to «continuous assisted trading», and is used as a benchmark index for funds investing in the French stock market. The index also gives a general idea of the direction of the Euronext Paris, the largest stock exchange in France formerly known as the Paris Bourse. The CAC 40 is one of the major global stock market indices you’ll always see included in business news round-ups, and is representative of the economic health of Europe as a whole. Exchange traded funds (ETFs) give traders access to a wide range of markets and assets through a single point of entry – an ETF share. With this option, you’ll trade on CAC 40®-linked ETFs using our CFD trading account to take a position. As the benchmark index for the French market, the CAC 40® is one of the biggest European stock markets, hence it’s one of the most important national indices of the pan-European stock exchange group, Euronext.
This means that you’ll find approximately 45% of the listed stocks owned by foreign investors. The CAC 40® is a stock market index that tracks the 40 largest shares listed on the Paris Stock Exchange. The selection of stocks are based on market capitalisation and the index is commonly used as an indicator of France’s market filling the gap stocks performance. According to estimates from both Wallet Investor and Gov Capital, the CAC 40 index could rise in the short, mid and long terms. However, these estimates must not be considered a recommendation to invest in the benchmark. They are drafted based on an analysis of the index’s historical performance and price trend.
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We’d like to share more about how we work and what drives our day-to-day business. Click the link below and we’ll send you MarketBeat’s list of seven stocks and why their long-term outlooks are very promising. Here are the current sectors that are part of the CAC 40 Index with their current weighting. As you can see, the Industrials sector is the largest in terms of percentage taking up nearly one-quarter of the index. Real estate, by contrast, is the smallest segment which is fairly typical of indexes such as these.
Stock market indices in Europe
Indeed, the economy’s recovery should lead to a drop in unemployment and a return of investor confidence, which should lift the Paris stock market as a whole. This has the consequence of favouring companies with a smaller capitalization and many shares available for purchase, over large companies still owned by the State for which few shares are available on the markets. The CAC40 stock index is very popular with French investors, but it is also the easiest way for investors worldwide to access the French stock market. Finally, the state of the energy market could have a strong influence on the performance of the index. Any indications that natural gas and oil prices will continue to increase may lead to revisions to the country’s forecasted economic growth that could depress the value of companies based in France. As of 8 December, France’s GDP was expected to grow by 2.6% this year, according to estimates from the European Commission (EC).
The index is also used to give investors a snapshot of the broader market conditions of the Euronext Paris, which is the largest stock exchange in Paris. 77.77% of retail investor accounts lose money when trading CFDs with this provider. While most of the companies listed on the CAC 40® consist of France-based corporations, the index comprises of the most multinational stocks in comparison to other European markets.
Soft China data hits European bourses
You can also get exposure by trading individual stocks that make up the CAC 40® index. These are the top 40 France-based companies, whereby you can speculate on their price rising and falling. Some of the companies that you’ll find include L’Oreal, Renault, Michelin and many others. The CAC 40 companies are regularly updated to ensure that they are representative. Euronext’s Scientific Advisory Board decides which stocks are included in the index and which are excluded.
Following this record, the Internet crisis of 2000 gave way to a brutal downward trend that brought the CAC 40 to a low of 2,400 points in March 2003, a drop of 65% in less than 3 years. From its creation until September 1996, the CAC40 has shown a weak upward trend. Then, from 1996 to 2000, the CAC 40 recorded 4 years of a powerful uptrend, seeing its value rise from around 2000 points to an absolute record of 6944 points which has not been reached again since then.
Sign up for a free demo account to ensure you’ll be managing your future CFD portfolio properly. It exposes to a variety of the most prominent French forex spreads companies and provides decent potential profits (when done right). It suits all kinds of traders; you can trade as much or as little as you want.
The CAC 40 is a market-cap weighted index of 40 of the 100 companies with the highest market cap on the Euronext. In this way, the CAC 40 closely approximates the Dow Jones Industrial Average. That is like the Dow in the United States, the CAC 40 is the most commonly used index to analyze the overall level and direction of the French market. You can also trade CAC 40®-linked fund shares using our derivative product to take a position on price movements. When using CFDs, it’s better to do so on the index directly to trade the real price, which has lower spreads, higher liquidity, and longer market hours.
The CAC 40 Index Price Evolution
A correction followed before the 2008 financial crisis deepened the fall of the CAC 40 to a low of 2465 points in March 2009. The algorithm-forecaster predicted the price could continue to rise in the next few years. The following is a detailed list of the algorithm’s forecasts for the end of December 2022 and November ironfx at a glance 2025. Leading the losers is Teleperformance with a 42.4% accumulated loss in 2022, followed by Eurofins Scientific and Dassault Systemes with year-to-date (YTD) losses of 39.9% and 33.3%, respectively. Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time.
CAC 40 is short for Cotation Assistée en Continu, which means Continuous Assisted Quotation. Initially, it was formed as an early automation system for France’s securities market. Since then, it has transformed into an index representing the 40 most significant stocks on Euronext Paris. Before you’re ready to enter the real market, you need to learn the basics. At Libertex, we offer a wide range of resources to build your trading skills.
Among the regulated, efficient and reliable brokers is ZFX, where you can buy CAC 40 Index easily and quickly. Find below a table listing all the CAC 40 list of the 40 stocks composing the index. Since then, the index has been on an uptrend, having recently peaked at 6913 points, and although currently on pause, the underlying uptrend has so far sent no signal of weakening.
If a company has more than one class of shares traded on the exchange, only the most actively traded of these will be accepted into the index. The CAC lists France’s 40 largest companies traded on the Paris Stock Exchange. The companies in the index are weighted primarily on the basis of market capitalization and the market price of the shares in free float; a company’s weighting may not exceed the 15 per cent mark, however. In addition, a company limited by shares must fulfill certain criteria in order to be included in the CAC 40. For example, the company must be among France’s most important companies and must be domiciled in France.
