Main European Stock Exchanges were mixed in the week from 17 to 21 September 2012 (Milan -3.8%, London -1.1%, Frankfurt +0.5%, -1.4% Paris, Madrid +0.9%). Market Performances were affected by fears of a slowdown in the global economy following weak macroeconomic data: PMI Manufacturing index resulted worse than expected in Europe (42.6 vs. 46.4E) and forecast in decline in China, US jobless claims in September higher than expected.
The Auto & Parts sector was down due to negative car registrations figures in Europe (-8.5% in August) and worsening of tensions between China and Japan. Among the major downside: Fiat Auto (-7.6%), Peugeot (-7.7%) BMW (-3.6%).
Pirelli closed at € 8,945, down by 4.5% with an average daily trading volume of 2.5 million units. Peers trend was mixed with Nokian and Michelin down by 7.6% and 1.2% respectively while Continental was flat as regards inclusion in the blue chip index Dax. The outperformance of Pirelli in the last months (+37.5% YTD) led CITI to take a more cautious view on the stock (Neutral from Buy, TP € 10.5 to € 10): according to the broker, space of upside for the stock is limited since market expectations are already including company’s targets.