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.
The CAC 40 is the main index of the Paris Stock Exchange and is, therefore, the easiest way for international investors to invest or trade on the French stock market. In this analysis, we will explain in detail what the CAC 40 index is, how it is calculated, and its components and specificities, without forgetting to describe its historical evolution. The CAC 40 is the main French stock market index that features the most prominent businesses in the French economy. Keep reading to find out more about the CAC40 index, its history, the 40 companies that constitute it and how to start trading it. Investors can choose to invest directly in any of the individual components of the index using American Depository Receipts (ADRs) or by simply purchasing the stock directly on the Euronext Paris Exchange. However, buying stocks directly on the Euronext exchange may have tax implications, currency risks along with other risks.
Indeed, for many of the reasons discussed in this guide, it is arguably one of the best brokers for trading the CAC 40 index. This chart confirms the current positive trend for CAC40 with a bullish channel visible since mid-2020, as part of a rebound from the initial impact of the covid-19 pandemic. However, to determine analysts’ opinions, we can rely on their opinions about the individual CAC40 stock that make up the index. You will then have to fill in a registration form with several personal details, including your phone number, which will be verified by SMS. This broker provides its clients with the MT4 trading platform, which is the most widely-used globally thanks to its many technical analysis and automated trading advantages. Find below a table listing all the CAC 40 list of the 40 stocks composing the index.
CAC stands for ‘Cotation Assistée en Continu’ , loosely translated in English to ‘continuous assisted trading’. The name is derived from its value being updated every 15 seconds from Monday to Friday between 9am and 5.30pm (UTC+2). As of February 2017, it includes well-known global brands such as L’Oreal, Renault, Michelin and BNP Paribas. The name is derived from https://forexhero.info/ its value being updated every 15 seconds from Monday to Friday between 9am and 5.30pm. Zeal Capital Market (Seychelles) Limited is part of Zeal Group, which does not accept or offer any products to Hong Kong residents or public. If you think that the CAC40 could be an suitable addition to your portfolio, we invite you to find out more about the broker ZFX.
Market capitalization refers to the total dollar market value of a company’s outstanding shares. Commonly referred to as market cap, it is calculated by multiplying a company’s shares outstanding by the current market price of one share. The investment community uses this figure to determine a company’s size, as opposed to using sales or total asset figures. The CAC 40® is a stock market index that tracks the 40 largest shares listed on the Paris Stock Exchange.
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- This broker provides its clients with the MT4 trading platform, which is the most widely-used globally thanks to its many technical analysis and automated trading advantages.
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A correction followed before the 2008 financial crisis deepened the fall of the CAC 40 to a low of 2465 points in March 2009. IG International Limited is part of the IG Group and its ultimate parent company is IG Group Holdings Plc. IG International Limited receives services from other members of the IG Group including IG Markets Limited. The information in this site does not contain (and should not be construed as containing) investment advice or an investment recommendation, or an offer of or solicitation for transaction in any financial instrument. IG International Limited is licensed to conduct investment business and digital asset business by the Bermuda Monetary Authority.
European stocks break two-day declining streak
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 is the French equivalent of the Nikkei (Japan), the Hang Seng (Hong Kong) and the Dow (United States). The index tracks 40 of the largest French stocks based on their market capitalization on the Euronext Paris.
CAC 40 (which stands for Cotation Assistee en Continu or “continuous assisted trading”) is used as a benchmark index for funds investing in the French stock market. 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. Some of the big names on the CAC 40® index include LVMH, L’Oréal, Hermès, TotalEnergies and Sanofi. The risks of loss from investing in CFDs can be substantial and the value of your investments may fluctuate. 70% of retail client accounts lose money when trading CFDs, with this investment provider. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Learn about the industry as a whole as well as seven companies that are getting work done with the power of AI. For investors looking to trade more targeted areas of the French economy, there are other indexes that have spun off the CAC 40 including the CAC Next 20 and the CAC Mid 60. The index peaked during the dot-com bubble soaring up to a peak of nearly 7,000.
Learn first. Trade CFDs with virtual money.
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. 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.
This website is using a security service to protect itself from online attacks. There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data. For more info on how we might use your data, see our privacy notice and access policy and privacy webpage. According to Factset data, the average analyst recommendation is positive for 39 of the CAC 40 stocks.
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. Using our derivative product, you’ll buy or sell CFDs to exchange the price difference of the France 40 between the opening and closing position. The history of the CAC 40 begins in 1987, when its base value of 1,000 was set on December 31.
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The CAC 40 represents a capitalization-weighted measure of the 40 most significant values among the 100 highest market caps on the exchange. The index is similar to the Dow Jones Industrial Average (DJIA) in that it is the most commonly used index that represents the overall level and direction of the market in France. You can also trade CAC 40®-linked fund shares using our derivative product to speculate on price movements. The CAC 40® index is popular among traders because it’s one of the most liquid stock market indices in the world.
How to trade the CAC 40®
The following chart shows the history of the CAC 40 in the 21st century, highlighting the major fundamental events that shaped its price. © 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart’s disclaimer. As the AI market heats up, investors who have a vision for artificial intelligence have the potential to see real returns.
ADRs come with their own set of risks, primarily liquidity risks when compared to buying the individual security. This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this npbfx page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result.
It is made up of the 40 largest equities in France based on market capitalization and liquidity. Unlike the Euro STOXX Index, the CAC 40 is made up almost exclusively of French companies. However, it has a multinational reach that makes it a popular avenue for foreign investors to get exposure to the European market.
