Main European stock market were down in the week from 4 to 8 February 2013 (Milan -4%; London -1.3%, Frankfurt -2.3%; Paris -3.3%, Madrid -0.7%). Political vicissitudes in Spain – calls for the resignation of the Prime Minister – and Italy in the upcoming elections of February 2013, renewed fears on peripheral Euro countries pulling down stock indexes. Data on U.S. productivity declining in 4Q (-2% QoQ vs. -1.4% expected) and the view of the President of the ECB on a still weak economic activity in the euro area (recovery only in the second part of the 2013) also weighed on sentiment.
European Auto&Parts sector performance was slightly positive (+0.8%) in the second week of the reporting season. According to Daimler, car demand in 2013 will increase by 2%/4%, with a positive trend more pronounced in the second half of the year. Sector stocks also benefited from data on auto sales in China which rose in January by 35-40% compared to last year.
Pirelli ended the week at € 8.92 (-1.5%) discounting the negative mood on the Italian equity market (worst market in Europe) with an average daily trading volume of about 2.7 million. The year-to-date performance is still one of the best in the European tyre sector (+3.1% YTD) after a 33.1%increase in 2012.