FRANKFURT (dpa-AFX) - The Dax continued its recent recovery at a slower pace on Thursday. The leading German index rose by 0.41 percent to 18,450.48 points after climbing by around 1.2 percent in the middle of the week. The MDax mid-cap index gained 0.56% to 25,538.57 points. Due to a public holiday, there is no trading in New York this Thursday, which led to lower turnover on the German stock exchange.

Hopes of an interest rate cut are still supporting the stock market and record highs on the US stock exchange are driving the Dax, noted capital market strategist Jürgen Molnar from trading house Robomarkets. "However, it is probably only a matter of time before the pendulum swings back in the other direction and investors put economic risks, including fears of a recession, above monetary policy," the expert continued.

Meanwhile, the representatives of the US Federal Reserve were divided on the number of possible interest rate cuts in the current year. Four members expect no such measures, according to the minutes of the last Fed meeting published on Wednesday evening. Twice as many, on the other hand, expect two cuts. The average of the expectations is one. For the coming year, Fed officials expect an average of four cuts. That is more than previously estimated.

From a sector perspective, automotive stocks were in focus. While they had been at the top of investors' favor in early trading, they crumbled somewhat after the European Union introduced temporary punitive tariffs on the import of electric cars from China. According to an investigation by the EU Commission, the entire value chain for these products is heavily subsidized there, thereby damaging the industry in the European Union.

Among the individual stocks, Continental shares jumped 9.5 percent at the top of the DAX after an analyst conference of the automotive supplier and tire manufacturer. Conti expects business in the automotive supply sector to remain difficult in Europe this year, but anticipates growth in the Chinese market.

The management's statements signaled an unexpectedly strong second quarter, after the first quarter of the year had probably been the worst for a long time, commented one market participant. The most important news was that Conti's automotive division had performed much better than feared in the past quarter.

The preference shares of Sartorius continued to rise after an analyst study and gained almost two percent in the end. The expert Oliver Metzger from the investment bank Oddo BHF wrote that the laboratory equipment supplier would develop more dynamically than the entire biopharma market.

Following initial sales figures for the e-prescription, Redcare Pharmacy shares jumped by almost 13 percent, narrowly securing first place in the MDax. Analyst Martin Comtesse from the investment bank Jefferies spoke of an encouraging signal for the potential of e-prescriptions in Germany.

The EuroStoxx, the leading eurozone index, rose by 0.44% to 4,987.48 points. The Paris Cac 40 and the London FTSE 100 rose even more sharply.

The euro exchange rate rose. The European Central Bank set the reference rate at 1.0800 (Wednesday: 1.0758) US dollars. The dollar thus cost 0.9259 (0.9295) euros.

On the bond market, the current yield fell from 2.64 percent the previous day to 2.61 percent. The Rex bond index rose by 0.13 percent to 124.05 points. The Bund future lost 0.17 percent to 130.54 points./la/he

--- By Lutz Alexander, dpa-AFX ---