The week from January, 28 to February, 1st was mixed for major European stock markets (London +1%, Frankfurt -0.3%, Paris -0.1%). After a good start (Fitch removed negative outlook on U.S. debt), data on U.S. GDP contraction in Q4 (-0.1% versus expectations of +1.1%, the worst quarter since 2Q2009) and retail sales in Germany in December (-4.7% yoy in December, lower than expected) drove the markets into negative. Sales of stocks were more pronounced on the peripheral Stock Exchanges as Milan (-2.3%) and Madrid (-5.7%) suffered from the performance of the banking sector.
Almost unchanged European Auto&Parts sector (-0.1% Stoxx Auto) waiting for the full start of the reporting season 4Q FY 2012.
Pirelli closed the week at 9.06€, -1.8%, in line with peers following profit-taking after a YTD performance of 6.6%. Average daily trading volume was about 2.6 million units. SocGen has revised the rating on Pirelli 9.9 € (9.7 €) changing the rating to Hold (from Buy) following the limited upside after the last 12 months rally (+21%). The consensus stands at 9.9 € with 46% of the coverage (25 analysts) with Buy rating.