The French CAC 40 Index continues its upward trajectory, reaching 8,437 points on Thursday, 12 February 2026, marking its highest level on record. The index has risen by around 5% from the low recorded on 28 January 2026 at 8,021 points to the recent peak of 8,437 points. It has also gained approximately 2% since the beginning of the year and closed yesterday at 8,317 points.
The strong performance of the CAC 40 is driven by several key factors, most notably:
• Solid financial results reported so far by the majority of French companies for the final quarter of last year.
• Market expectations of interest rate cuts in the coming period by the European Central Bank, particularly amid the slowdown in French inflation, which recorded annual growth of 0.3%, below market expectations of 0.6% and the previous reading of 0.8%, providing additional support to equities.
• Moreover, several French economic indicators exceeded analysts’ expectations. GDP growth for the fourth quarter rose by 1.1%, significantly higher than the previous reading of 0.2%. The manufacturing PMI also increased to 51.2 points, above expectations (51.0) and the prior reading (50.7), while the services PMI came to 48.1 points. Although still in contraction territory, it exceeded expectations (47.9).
• Attractive valuations of French equities compared with US stocks, particularly relative to the S&P 500 Index, have further enhanced the appeal of the French market for investors.
From a technical perspective, indicators continue to support further upside for the CAC 40 Index:
Moving averages over 20, 50, and 200 days remain positively aligned, with the 20-day average above the 50-day average, and the 50-day average above the 200-day average, confirming a strong upward trend.
The Relative Strength Index (RSI) is currently at 60, indicating positive momentum.
Meanwhile, the MACD shows a bullish crossover between the MACD line and the signal line, reinforcing the positive outlook.
In addition, the Positive Directional Index (DMI+) stands at around 29 points versus approximately 20 points for the Negative Directional Index (DMI-), with the wide gap between the two reflecting strong buying pressure on the index.
Please note that this analysis is provided for informational purposes only and should not be considered as investment advice. All trading involves risk.
