STOCKS NEWS EUROPE-Pirelli up on China, auto-related trend

Italian tyre maker Pirelli & C SpA (PECI.MI) rises 6 percent, boosted by comments from the head of its Chinese operations and on a recovery in auto-related stocks.

Pirelli's China General Manager Giuseppe Cattaneo says first-half sales were up 40 percent while a $100 million investment in the country is on hold but could still go ahead.

Pirelli "pointed out everything is in place (for the investment) but they have not formalised the capital expenditure," one broker says.

"People are also chasing some of the auto-related stocks. Auto had such a good run and auto-related have been such dogs and now it is a rerating exercise and Pirelli is going very well," he adds.

The DJ Stoxx auto index .SXAP is up 0.4 percent.

For more on Pirelli's Chinese activities double click on [ID:nPEK277488]

Reuters Messaging rm://nigel.tutt.reuters.com@reuters.net