European stocks reported gains in the last week of the year, from the 26th to the 30th of December 2011 (Milan +0.4%, London +3.4%, Frankfurt +0.8%, Paris +2.9%). Over the week, markets benefited from the successful outcome of important Italian sovereign debt auctions, although yield differencials are still high and suggest caution. 2011 yearly performance is however still negative, with most European indices reporting double digit losses.
Auto & Parts stocks performed below market, with the European sector index losing 1% in the week, particularly due the Auto OEM segment. Pirelli, in line with the index, was down 1.1% in the week, closing at €6.505, up 7.5% over the year 2011.