Key European stock markets were down in the week from the 20th to the 24th of August (Milan -1.6%, Frankfurt -1%, Paris -1.6%, London -1%, Madrid -3.3%), after a strong performance over the last month (European equity index Stoxx 600 was up 7% in the last 4 weeks). News flow surrounding the European debit crisis weighted on sentiment, with Greece asking for more time to repay its debt. In a report published over the week, rating agency Moody’s said the process of reform started by European countries is only half complete, noting the achievements made in labor competitiveness and trade balance. The Chinese economy is another cause for concern, with PMI data suggesting economic activity contracted for the 10th month in a row.
Auto & Parts stocks performed in line with the market (-1.8% in the week), remaining the best performing sector in Europe this year (+22% since the beginning of 2012, compared with the 9.6% of the Stoxx 600).
Pirelli closes the week unchanged (-0.3%) at €8.97. Trading volumes were lower than average (2.8 million per day, lower than last month average at 4.2 million shares per day).