FRANKFURT (dpa-AFX) - Shares in Mercedes-Benz underpinned their recovery trend on Friday following confident comments on business development, according to one analyst. The share price had risen by 2.65 percent to 65.11 euros by midday. This means that the short-term recovery that began in mid-June has continued after the trend was broken the previous day. This could now prove to be a false breakout to the downside. On Friday, it was also enough to break back above the 21-day line - an average price that reflects the short-term trend.

In a telephone conference ahead of the figures for the second quarter, the car manufacturer continued to signal confidence in the margin ambitions of the core Mercedes brand, wrote analyst Philippe Houchois from investment house Jefferies in a study. Overall, business went according to plan, with the only negative deviations in China. In Europe, there were signs of an improvement in orders.

There was also hope that the dispute between the EU and China over tariffs on imports of e-cars from the country would not boil over any further. German Chancellor Olaf Scholz (SPD) has intervened in the dispute between the EU and China with a compromise offer, as the Handelsblatt newspaper wrote on Friday, citing government and EU circles. The Chancellor is proposing a deal in which both sides would impose equally high tariffs on car imports.

Other car stocks also rose on Friday in the wake of the news. Volkswagen gained 1.9 percent and BMW was up 0.7 percent. The European sector index Stoxx 600 Europe Automobiles & Parts was among the favorites in the sector tableau with a gain of around one percent.

It had already become known last weekend that an initial rapprochement had been reached in the customs dispute. Both sides want to negotiate with each other. The background to this is the EU's plans to impose tariffs on Chinese e-cars if no other solution can be found with China. The EU accuses Beijing of unfairly subsidizing battery-powered models. This initially weighed on the shares of car manufacturers, as investors fear countermeasures. And the Chinese market in particular is important for German car manufacturers./mis/tih/jha/