The CAC 40 index, also known as the France 40 or FRA40, contain 40 of the largest companies traded on the Euronext Paris stock exchange. The CAC 40, FTSE and DAX are considered significant measurements for the overall health of the European companies. Its portfolio aimed to reflect French companies; each component is allocated weight on its relative market capitalisation.
Many factors can affect the CAC40, such as rate decisions, Wall Street, the Euro and Individual stocks. The European Central Bank influences the European economy and Wall Street when markets are up or down. As the official currency in 19 countries, the Euro plays a major role in the economy, and it could be affected by events in a specific country or all the others in the Eurozone. In addition, individual stocks can impact the rest of the companies, especially one with a large weight allocation, which could shift the entire index's price.
The CAC 40 was created in 1987 and was made to reflect the current state of the French economy and initially had a total value of 347B French Francs with 1000 base points. In 2000 reached an all-time high of more than 6000 points. In 2015 it reached an overall market capitalisation of more than 1.2T Euros. CAC40 Index Cash
