STOCKHOLM/FRANKFURT (dpa-AFX) - Surprisingly good business figures from Volvo Cars sent the shares of European car manufacturers on a recovery course on Thursday. The sector index Stoxx Europe 600 Automobiles & Parts rose by 1.7 percent to 638.45 points at the top of the sector overview, after suffering in the past three trading days from concerns about Chinese consumers' propensity to buy and the threat of international tariffs.

The most recent price slide was due in particular to fears that Donald Trump could be elected for a second term in office following the presidential elections in the USA at the beginning of November. The Republican is seen as an advocate of protectionist measures to protect his own economy.

These concerns now appear to have receded somewhat into the background. The sector index rose well above the 21-day moving average, which is considered a measure of short-term performance. From a technical point of view, the next starting points are now the 50- and 200-day lines, which currently run at just under 650 points each. These lines describe the medium and long-term trends.

All 14 members of the Stoxx Europe 600 Automobiles & Parts recently recorded gains. Volvo Cars shares led the way with a gain of 8.6 percent. This means that they are currently trading at the same level as in mid-June.

The Swedish car manufacturer exceeded market expectations with its operating result for the second quarter. According to observers, this compensated for the lowered growth prospects for car sales this year.

Expert Harry Martin from US analyst firm Bernstein Research described the lowering of the forecast as a sensible step in view of the current state of the global economy. After all, Volvo Cars is still expecting double-digit percentage growth.

Martin emphasized positively that Volvo Cars' operating result had turned out better than expected, in particular thanks to lower raw material costs. In addition, the Swedes had achieved record profitability in the electric car business.

In Germany, the preferred shares of Volkswagen (VW) and the shares of BMW, Mercedes-Benz and Porsche AG were among the best performers on the DAX, rising between 1.7 and 2.5 percent. The leading German index rose moderately.

Bankhaus Metzler also commented positively on BMW shares. Following an analyst event, analyst Pal Skirta wrote that the "Neue Klasse" electric car platform is the Munich-based company's answer to the current, unprecedented technical challenges facing the industry. While BMW will unveil several flagship vehicles as part of the "Neue Klasse" launch campaign, the technical and design features of the concept are likely to run through the carmaker's entire product range./la/men/stk