CAC 40: The Index to Watch for French Stock Market Performance

What is the CAC 40?

The CAC 40 is the benchmark stock market index of the Paris Stock Exchange (Euronext Paris). It is a weighted average of the top 40 companies listed on the exchange by market capitalization, and is considered the "French Dow Jones" or "French S&P 500."

Historical Significance and Impact

The CAC 40 was first launched in 1988 and has since become a widely recognized indicator of the overall health of the French economy. It is heavily influenced by the performance of large French companies such as LVMH, TotalEnergies, and BNP Paribas, and provides a snapshot of the market's overall sentiment.