The CAC 40 index has had a spectacular year in 2021. It has rallied by more than 30% year-to-date, meaning that it has outperformed its European peers like the German DAX and UK FTSE 100. It has also outperformed the S&P 500 index. Most importantly, only 6 companies in the index have been in the red this year.
France best and worst performers
The CAC 40 index has done relatively well this year. This performance has happened as more companies in the index have done well.
The best performer in the index is Hermes, the giant luxury goods maker. The Hermes stock price has jumped by more than 75% as demand for its goods in China soar. Indeed, other luxury goods makers have done well.
For example, the LVMH stock price has risen by more than 42%. This growth has pushed Bernand Arnaut to become the third richest man in the world. EssilorLuxottica, Pernod Rickard, and L’Oreal have also done well.
Other top performers in the CAC 40 index this year are Societe Generale, whose share price has jumped by more than 74%. It is the second-best performer in the index and is followed by Capgemini, Dassault Systems, and Veolia.
On the other hand, there are only six laggards in the index this year. The worst-performers in the CAC are Vivendi, WorldLine, Alstom, Bouygues, Renault, and Safran.
CAC 40 index forecast
The daily chart shows that the CAC 40 index has been in a strong bullish trend in the past few weeks. On the daily chart, the stock has moved above the key resistance level at 6,920, which was the previous year-to-date high. The stock is also being supported by the Bollinger Bands and the short and longer-term moving averages.
Therefore, the CAC will likely keep the momentum going in the near term as the euro retreats. This could see it surge to a high of 7,300 in the coming weeks. On the flip side, a drop below 6,920 will invalidate this view.
