The week from March 25 to 28 was a tough one for the main European stock exchanges: Milan -4.4%, London +0.3%, -1% Paris, Frankfurt -1.5%, -4.9% Madrid. Markets continued to be impacted by Cyprus financial crisis and by the political stalemate in Italy with a possible consequent risk of a Public Debt rating downgrade.
Auto & Parts sector stocks was also down (-2.5% Stoxx Auto) following the warnings on first quarter 2013 trend and the confirmation of the sector negative outlook by Moody’s: the agency has estimated a Light Vehicle demand in Europe down 5% in 2013.
Pirelli ended the week at € 8,185 (+0.9%) in contrast to the sector and the reference market with a daily average traded volumes of approximately 2.6 million pieces. The stock has benefited from the upgrade to Buy (from Hold) by Société Générale: according to the broker, after a period of transition in 2013 given the current market conditions, Pirelli is well positioned for a rebound in 2014.