What Is the CAC 40® Index and How Can You Trade on It? IG Bank Switzerland

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. The CAC 40® is a stock market index that tracks the 40 largest shares listed on the Paris Stock Exchange.

  1. Adam received his master’s in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology.
  2. However, it has a multinational reach that makes it a popular avenue for foreign investors to get exposure to the European market.
  3. © 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions.
  4. 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.

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. Furthermore, the company’s shares must be among the hundred most traded shares on the Paris stock exchange.

We want to clarify that IG International does not have an official Line account at this time. We have not established any official presence on Line messaging platform. Therefore, any accounts claiming to represent IG International on Line are unauthorized and should be considered as fake. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money. The CAC 40 Index is the French equivalent to the Dow Jones Industrial Index (DJIA). It is made up of the 40 largest equities in France based on market capitalization and liquidity.

Some of the big names on the CAC 40® index include LVMH, L’Oreal, Hermès, TotalEnergies and Sanofi. Some of the big names on the CAC 40® index include LVMH, L’Oréal, Hermès, TotalEnergies and Sanofi. With us, you’ll trade on the CAC 40® price with our France 40 offering using a CFD trading account. When trading via CFDs, you won’t take ownership of the underlying asset outright, but you’ll be speculating on the France 40 price rising or falling. You can also use CFDs to trade CAC 40-linked stocks and ETFs with us.

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In this CAC 40 forecast, we assess the index’s historical price trend and its prospects to outline plausible scenarios for the future. The affiliate programme is not permitted in Spain for the commercialisation of investment services and client acquisitions by unauthorised third parties. After reaching an all-time high of nearly 7,000 during the dot-com boom in 2000, the index fell to around 3,000 during the economic crisis in 2011 before recovering to upward of 5,000 in 2020. 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. MarketBeat has just released its list of 20 stocks that Wall Street analysts hate. These companies may appear to have good fundamentals, but top analysts smell something seriously rotten.

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 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. 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.

Right after the pattern formed, the index rallied to 6,600 – a key resistance level. Shortly afterward, it posted a sharp decline and retested the 5,775 support but bounced off after a couple of bear traps. 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.

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The selection of stocks are based on market capitalisation and the index is commonly used as an indicator of France’s market performance. The CAC 40 is a stock market index that tracks the 40 largest shares listed on the Paris Stock Exchange. While most of the liquid market 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. This means that you’ll find approximately 45% of the listed stocks owned by foreign investors.

The composition of the CAC 40 is reviewed quarterly by a commission and adjusted when necessary. An independent steering committee reviews the CAC 40 index composition quarterly. At each review date, the committee ranks companies listed on Euronext Paris according to free float market capitalization and share turnover in the previous year. Forty companies from the top 100 are chosen to enter the CAC 40, and 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. Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors.

None of these CAC 40 predictions or the opinions and comments expressed in this article should be taken as a recommendation to invest in the index. 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. This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this 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. No representation or warranty is given as to the accuracy or completeness of this information.

Nouveau record historique pour le CAC 40

Investors are encouraged to perform their own due diligence before making any investment decision. The CAC 40 index is a broad-market benchmark that tracks the value of 40 securities listed on the Euronext Paris exchange. The performance of this business is primarily influenced by how the European economy is doing. Investors must evaluate the prospects of this region to determine if it is a good time to invest in the index.

CAC 40 forecast: Is the French index poised to outperform its peers?

We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading. Information presented by DailyFX Limited should be construed as market commentary, merely observing economical, political and market conditions. This information is made available for informational purposes only. It is not a solicitation or a recommendation to trade derivatives contracts or securities and should not be construed or interpreted as financial advice.

It was a group of brokers that operated the Paris Stock Exchange since at least the 16th century. Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time. The following chart shows the history of the CAC 40 in the 21st century, highlighting the major fundamental events that shaped its price. 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.

There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data. 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.

Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such https://bigbostrade.com/ is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. The CAC 40 represents a capitalization-weighted measure of the 40 most significant values among the 100 highest market caps on the exchange.

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