2018 outlook for the French stock market

In an era of shifting geopolitical landscapes and pervasive uncertainty, France has emerged as a favored destination for investors, offering the promise of a new era of growth. France’s “golden decade” in the stock market While the United Kingdom grapples with the complexities of Brexit, Italy faces the burden of heavy debt, and Germany contends with its own political challenges, the French stock market stands out as a bastion of stability amid the turmoil. According to Vincent Deluard, global macro strategist at INTL FCStone, the French stock market is currently priced attractively compared to its European counterparts. Despite recent unrest in France, including contentious taxes and the “yellow vest” protests, the CAC 40 Index continues to chart a course of steady growth.

Here’s a snapshot of its performance over the past month:

The Euronext Paris securities market, formerly known as the Paris Bourse, serves as France’s primary stock exchange. In the year 2000, it joined forces with exchanges in Lisbon, Brussels, and Amsterdam to create Euronext, making it the second-largest European stock exchange after the London Stock Exchange (LSE).

French stocks are classified into three main segments:

1. The Premier Marche, encompassing large French and international corporations.
2. The Second Marche, featuring medium-sized enterprises.
3. The Nouveau Marche, showcasing fast-growing startups.

Additionally, there is the fourth market, Marche Libre, which operates without regulation and handles stock transactions not covered by the other three markets. The French stock exchange administers a family of CAC indices, including the CAC 40, CAC Next 20, CAC Mid 60, and CAC Small. The CAC 40 Index, initiated in 1987, represents the 40 largest and most actively traded companies listed on the Euronext Paris exchange and is a prominent benchmark index in the French stock market. Trading the CAC 40 index through contracts for difference (CFDs) enables traders to take both short and long positions without engaging in traditional exchanges. Instead, CFDs facilitate direct trading with platform providers. Historically, the CAC 40 Index attained its peak at 6,922.33 during the dot-com bubble in September 2000, while its lowest point of 893.82 occurred in January 1988. As of December 21, 2018, the French stock index inched up by 2 points or 0.04% from 4,692 to 4,694 in the previous trading session. For real-time updates on the CAC 40 Index’s performance, consult our live CAC 40 price chart.  

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