An insight into the CAC40 – Index Expert
From ESCP Finance Society
Soukaïna Bouziri, Master Student
The « CAC40 » (cotation assistée en continu) is the French stock market index. The market open at 9.00am till 17.35, following the pre-market hours from 7.15-9.00am. The CAC40 is undoubtedly and by a long chalk, the most followed up index of Paris Stock market. So, let’s analyze what’s behind all this financial boiling and give a critical vision of this thermometer of the French economy as a whole.
As a matter of fact, the CAC40 progression reverberates investors’ expectations about the global performance of the French economy. The explanation is pretty simple: the CAC40 tracks the 40 listed French enterprises with the highest market capitalization. Some of the CAC40 companies are listed also in other stock exchanges like Amsterdam, or Italy (LVMH). Every companies’ stocks influence the Index proportionally to their weight over the market capitalization.
This principle enhances the height of the « BIG VALUES » of the CAC40…
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