The week from 30 August to 3 September was distinguished by the marked upturn on all the European markets. (Milano +4.1%, London +5.3%, Paris +4.7%, Frankfurt +3.1%). The macroeconomic news from the US contributed to this positive mood, which boosted demand over the week (the US manufacturing index was higher than in July, consumer confidence is recovering, job losses falling, and there was a slight recovery in the property market and house prices).
At sector level, the demand was primarily focussed on the auto industry (+6.4%), perceived as good at the moment after Daimler’s August results (Mercedes-Benz shares rose for the tenth consecutive month to +19%, and the week’s performance was +8.5%).
The trend in European tyre shares was positive, rising over 3 percentage points, supported by recently published market data. According to Morgan Stanley, the recently announced price increases and market trends show that the tyre market will continue to perform well: double digit growth in volumes in July in the truck segment, while Mercosur continued to be the market with the highest growth: +13% for replacement car & light vehicle; +57% the truck OE.
Pirelli closed the week at 5.47€ a rise of 3.7% , with a YTD performance of +18.4% (FTSE Mib -11.2% YTD) further confirmation of its status as best performer in the FTSE Mib basket since the start of the year (+29.6pp). The average number of daily trades was just over 3 million.
There was also some attention paid to Pirelli RE (on the agreement for Berggruen to acquire Karstadt), resulting in the best property sector result for the week: +6.2% to 0.37€ beating the 2.6% of the Epra Europe reference index.