BCE’s statements last June 10th on monetary policy has helped lessen investors’ fears on the European economy, reflecting positively on the stock market. The Milan stock market closed the week ending June 11th with positive gains of 5%, whereas Paris Stock Exchange rose by 3% and London Stock Exchange by 1%.
The European Central Bank has decided to leave its benchmark interest rate unchanged and supported the banking system by providing maximum added liquidity through fixed rate tender auctions.
Banks, as well as the automobile and building sector showed the best trend (+5% on European Indices).
Pirelli rebounded back to its year high, closing the week at € 0.472 (+4.8%). The positive consensus forecast for Pirelli remains unchanged: target price €0.52 and a buy recommendation on the coverage by analysts (88%).
Pirelli RE also showed slight gains, closing the week at € 0.37 (6.6%) reflecting goods news on a possible amalgamation and negotiation with other real estate companies. Main market peers showed a mixed trend (Aedes -3%, Brioschi -8% and Risanamento +12% due to news regarding the sale of the former Falck di Sesto San Giovanni Area).