Why is the CAC 40 (France 40) important to traders?
The CAC (Cotation Assistée en Continu) 40 is the benchmark French stock market index, representing the 40 most significant companies among the 100 highest market capitalisations listed on the Euronext Paris exchange. It is one of the biggest European stock markets, and hence one of the most important national indices of the pan-European stock exchange group, Euronext.
CAC 40 (France 40) trading hours
The main trading hours for the CAC 40 are between 09:00 – 17:30 (CET).
How to trade the CAC 40 (France 40) CFD?
The CAC 40 is one of the most popular and widely traded indices of the Euronext group, and it has a tendency to be volatile. Like any stock index, the CAC 40 cannot be bought and sold like an equity. Instead, you can trade the CAC 40 index today using contracts for difference (CFDs). Trading the CAC 40 using CFDs allows you to take a long or short position without having to deal with an exchange.
How is the CAC 40 calculated?
The CAC 40 is comprised of 40 of France’s top companies listed on the Euronext Paris exchange. The index is composed and reviewed by Euronext, a European stock exchange.
Constituents of the CAC 40 are reviewed every quarter. Companies are selected based on a combination of two rankings: firstly, the value of their regulated turnover from the previous 12-month period, and finally, their free-float adjusted market capitalisation. The CAC 40 index consists of these 40 highest companies, where the companies ranking from 36 to 45 are placed in a riser-faller buffer zone, with priority given to those companies already in the index. Note that in some cases, companies from other Euronext exchanges, can be granted a place on the CAC 40.
Why trade the CAC 40 with Capital.com
Advanced AI technology at its core: a Facebook-like newsfeed provides users with personalised and unique content depending on their preferences. If a trader makes decisions based on biases, the innovative SmartFeed offers a range of materials to put him back on the right track. The neural network analyses in-app behaviour and recommends videos, articles, news to polish your investment strategy.
Trading on margin: providing trading on margin (20:1 when trading major indices), Capital.com gives you access to the CAC 40 index with the help of CFDs.
Trading the difference: by trading CFDs on the CAC 40 index, you speculate on the rise or fall of its price. CFD trading is no different from traditional trading in terms of its associated strategies. A CFD investor can go short or long, set stop and limit losses and apply trading scenarios that align with his or her objectives.
All-round trading analysis: the browser-based platform allows traders to shape their own market analysis and forecasts with sleek technical indicators. Capital.com provides live market updates and various chart formats, available on desktop, iOS, and Android.
Focus on safety: Captal.com puts a special emphasis on safety. Licensed by CySEC, it complies with all regulations and ensures that its clients’ data security comes first. The company allows to withdraw money 24/7 and keeps traders’ funds across segregated bank accounts.
Businesses on the CAC 40
A list of the current companies trading on the CAC 40 index today, following the changes on 24 September 2018:
|ACAp Credit Agricole||-||Sell||-||Buy|
|GLE Societe Generale||-||Sell||-||Buy|
|RNO Renault Par||-||Sell||-||Buy|
|STMm Stmicroelectronics NV||-||Sell||-||Buy|
|SGO Compagnie De Saint Gobain||-||Sell||-||Buy|
|PUBp Publicis Groupe||-||Sell||-||Buy|
|VIE Veolia Environnement Ve||-||Sell||-||Buy|
|BNP Bnp Paribas||-||Sell||-||Buy|
|AI Air Liquide||-||Sell||-||Buy|
|RI Pernod Ricard||-||Sell||-||Buy|
|MC Lvmh Moet Hennessy Louis Vuitton Se||-||Sell||-||Buy|
|SCHN Schindler Holding AG||-||Sell||-||Buy|
History of the CAC 40
The CAC gets its name from Paris Bourse’s, the historical stock exchange, automation system, the ‘Cotation Assistée en Continu’, which translates to ‘Continuous Assisted Quotation’. Launched on 31 December 1987, with a base value of 1000, equivalent to a market cap of 370,437,433,95.70 French francs, the all-time high to date of the index is 6922.33 points. Like many other major indices, this was reached at the peak of the dot-com bubble in September 2000.
Performance of the CAC 40
See the CAC 40 index performance, historical data and chart below:
The CAC Next 20 is a stock index of those listed on the Euronext Paris, or sometimes Euronext Amsterdam, exchanges. The index gathers the 20 companies whose market capitalisations, and revenues, are ranked after those of the 40 companies who comprise the CAC 40. The companies listed on the CAC Next 20 are possible candidates to replace members of the CAC 40 index. The CAC Next 20 was launched on 31 December 2002, exactly 15 years after the CAC 40 was launched.
Due to the distribution of market capitalisation, the CAC 40 is particularly sensitive to certain changes in supply and demand of specific goods and services. Stock prices of the largest companies have a disproportionate effect on the index. For instance, Total, a multinational oil and gas company, is the biggest stock within the CAC 40, and hence the index can be directly affected by changes in oil price, affecting the value of Total’s stock price. The exact same principle applies with the stock Sanofi, a leading pharmaceutical company, when a new drug receives approval, the stock is expected to rise, having an impact the index, or conversely when a patent expires, and the company faces competition, the stock is expected to fall, which can affect the index.
Global economic changes, trends and national events, such as French presidential elections, wars and natural disasters have an incredible impact on the index. French social and geopolitical issues will have a strong influence on the CAC 40. During the 2017 French presidential election, the CAC 40 would go up or down, depending on whether Macron or Le Pen, respectively, were ahead in the polls. As well as this, French macroeconomic indicators will have an affect on the CAC 40.