European stock markets were up in the week from the 11th to the 15th of June, 2012 (London +0.8%, Frankfurt +1.6%, Paris +1.2%, Madrid +2.5%), thanks to the agreement on European aid to the Spanish banking system and the statement by the ECB President, confirming the intention to provide funding to financial institutions.
Bank stocks were up, also thanks to short covering (European index +1.8%), whereas the Auto & Parts sector ended the week down 2.8%, due to macro uncertainties.
Pirelli closes the week at €7.815 (-1.9%), with 3.4 million shares traded per day, on average. The acquisition of Dackia was positively welcomed by the market; according to Banca Aletti the agreement is strategically significant since it allows for a better coverage of the Nordics market, structurally oriented towards the profitable winter tyre segment. Moreover, according to Morgan Stanley’s research piece on the Essen Tyre Show, Pirelli is best positioned among European tyre makers to take advantage of the upcoming tyre labeling regulation, along with the surprisingly well ranked Emerging Markets producers.