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What is CAC 40 index?
The CAC 40 (CFD ticker: FRA40) is France's stock market benchmark index. This index represents the top 40 stocks on the Euronext Paris stock exchange, formerly known as the "Bourse de Paris," with a total market capitalization of €1.03 trillion in 2015. Monday through Friday, Euronext trading hours begin at 9 a.m. and end at 5:35 p.m. CET for the fixing. This index was established in December of 1987, with a base value of 1,000. This index is very useful for investors who want to get a sense of how France's stock market is performing and the economic implications of that performance. Because France accounts for one-fifth of Europe's total economy, investors should closely monitor the behaviour of the French index to gain insight into where the European economy is headed. CAC 40 stocks represent a diverse range of industries, with a total of 35 sectors represented. This index includes sectors such as tires, automobiles, chemicals, cyber security, steel, aerospace, and insurance, to name a few. The CAC 40 is France's version of the DAX 30. The pharmaceutical sector has the greatest impact on the index, accounting for 10% of the total weight of the index, followed by banking at 10% and oil equipment and services at 9%.
The CAC 40 index is a benchmark stock market index representing the 40 largest and most actively traded companies on the Euronext Paris. It stands for "Cotation Assistée en Continu" (Continuous Assisted Quotation) and serves as a key indicator of the overall performance of the French stock market. Established in 1987, the CAC 40 includes companies from diverse sectors such as energy, luxury goods, finance, and industrials. It is weighted by market capitalization, meaning larger companies have a greater influence on the index's movements. As a major European index, the CAC 40 is closely watched by investors globally for insights into the health and trends of both the French economy and the broader European market.

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