The main European stock markets were up in the week from the 19th to the 23rd of May 2014 (Milan +0.5%, London -0.6%, Frankfurt +1.4%, Paris +0.8%, Madrid +0.8%). Investors reacted positively to better than expected household confidence data in Europe for the month of May (best reading since October 2007) as well as improved manufacturing activity in china (HSBC Markit index at 49.7 in May up from 48.1 in April).
Auto & Parts stocks advanced (sector index +4.5%), recovering the negative performance of the previous week; the positive momentum of auto sales in China continues into April (+12% yoy, Premium brands outperformed).
Pirelli shares closed the week at 12€ up 4.6 percentage points. Trading activity was below average: 2.2 million shares traded on average per day, lower than the 3.6 million shares over the previous three months. Consensus Target Price stood at 12.68€ with 84% of analysts recommending to buy or hold the shares.