Stocks advanced in the first week of October (Milan +4.7%, London +3.4%, Frankfurt +3.2%, Paris +3.8%), marking the second consecutive week of gains. In Europe, political willingness seemed to favor helping the banking sector, in the form of capital injections to those institutions most exposed to the sovereign debt crisis. At the same time, in his last decision as ECB president, Trichet instituted temporary unlimited funding for banks and a covered bonds buying program, while keeping the benchmark interest rate unchanged. Positive sentiment was further fuelled by labor markets data in the US, which came out better than expected.
Auto & Parts stocks were up last week as well (+1.9%). Pirelli closed at €5.63, gaining 4.8%, on an average daily volume of 4.85mln stocks while Michelin (+0.1%) and Nokian (-0.4%) were largely unchanged with respect to the previous week.