The CAC 40 is used as a benchmark index for funds investing in for the French stock market and also gives a general idea of the direction of the Paris Bourse. The CAC 40 is similar to the Dow Jones Industrial Average in that it is the most commonly used index that represents the overall level strength and direction of the market in FranceFrench economy. At the time of writing (Aug 2005), the CAC 40 includeconsists of d such companies such as Renault, Michelin, L’Oreal and Vivendi Universal.
