Will the CAC 40 stock index break to all-time highs?

By Admiral Markets

Global stock market index trends have been relatively uneven in recent weeks. The Nasdaq 100 for example is trading around 7% below its record high around ~$13,906.00 recorded on 16 February.

Conversely, the Dow Jones 30 and DAX 30 have been trading at record highs. And now, the CAC 40 is closing in on its all-time high price level as well.

Source: Admirals MetaTrader 5, CAC40, Monthly – Data range: from Jun 1, 2005, to Mar 30, 2021, performed on Mar 30, 2021, at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results. 

In the long-term, monthly price chart of the CAC 40 stock market index shown above, it’s clear to see the record high price level around ~€6,177.00, highlighted by the black horizontal line. This record high was recorded on the 1 June 2007.

The current price is only a few percentage points away from breaching this level. So far, investors have been bullish on the CAC 40 index with the daily chart recorded a series of higher high and higher lower cycles, as well as an ascending trend line, as shown below.

Source: Admirals MetaTrader 5, CAC40, Daily – Data range: from Nov 18, 2020, to Mar 30, 2021, performed on Mar 30, 2021, at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results. 

Currently, stocks that are more sensitive to the economic cycle are outperforming the rest. Auto companies, travel, leisure and bank stocks have been outperformers in the past quarter. These are also the stocks that were hit worst during the coronavirus pandemic and have represented good valuations for long-term investors – making it a very interesting time for European stock indices!

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