The main European stock Exchanges were up in the week from the 4th to 8th of June 2012 (+5.5% Milan, Frankfurt +1.3%, London +2.6%, +3.4% Paris). The market sentiment benefitted from the statements of the ECB Governor about the availability of the Institution to provide unlimited liquidity to the banking sector through January 2013. Trading was also supported by the successful auction of Spanish Bonos (7 June, demand exceeding supply 3.3 times) and by the cutting of interest rates in China to 3.25% from the previous 3.50% (first cut since 2008 ).
The newsflow about monetary policies pushed Bank stocks. The European Sector Index was up 7%.
After a weak start due to fears of macroeconomic downturn, the Auto & Parts sector recovered to a final +0.6% (Stoxx Auto).
Pirelli ended the week at €7,965, 2.8pp better than the sector. Just over 2.8 million the average daily trading volume.