Sector rotation in favor of bank sector characterized the week from 26 to 30 July on the stocks markets. Following the results of stress tests required by the European Commission, the European Banks sector index recorded 5% upside. Profit taking affected sector that have better performed since the beginning of the year : Automotive & Parts marks -1.8% despite the positive indications for 2010 given that emerged from the publication of half-year results by the major car and components manufacturers such as Daimler, Pirelli, Continental and Michelin. Pirelli closed the week at € 5.37 (-1.1%) containing profit taking (-3.6% Michelin, Continental -2.5%). Pirelli 2Q 2010 results beated consensus estimates (+ 21% EBIT vs. the figure expected by market) with a positive impact both in terms of tyre estimates for 2010 (in line with the new target) and a higher evaluation of Pirelli stock. Ten brokers have revised their target price on Pirelli & C by an average of 40 € cents from €5.75 to €6.15. The full consensus target price stands now at € 6.04; Buy is the prevalent recommendation (83% of coverage). Pirelli, despite last week trend, is still the best performer on Ftse Mib year to date, with a relative performance of +26 pp compared to the index of blue chips. Pirelli RE, that confirmed its guidance for 2010 closed at € 0367 with an increase of 2.4% (+1.7 pp vs. the European Real Estate Index).