FRANKFURT (dpa-AFX) - The introduction of EU punitive tariffs on electric cars from China, which was widely expected on the stock markets, caused some restraint in the automotive sector on Thursday. However, there was no longer any major pressure on the share prices of European manufacturers, as investors had already largely priced in the European Union's measure. Shares in Mercedes-Benz, Volkswagen and Porsche AG recorded price gains.

The European sector index of car manufacturers and their suppliers was up half a percent at midday. In early trading, the index, which is made up of 14 shares, had risen by one and a half percent.

However, investors had already stepped on the brakes in recent weeks: In April, the selection index had risen to a record high of 740 points. Since then, the sector barometer has fallen by 15 percent. By comparison, the broad market Stoxx 600 Index has risen slightly in this period. Car shares have therefore recently lagged well behind the market as a whole.

The prospect of punitive tariffs and the fear of countermeasures from China have been causing "massive uncertainty in the automotive industry for months", wrote the stock market platform eToro. Western brands are struggling to assert themselves on the Chinese market. Germany's market share in the Chinese sales market has fallen from a high of 27.3 percent in mid-2020 to 22.5 percent. The market share of Chinese manufacturers, on the other hand, has increased "rapidly" to 50 percent.

"The mood for the sector, especially for the major German manufacturers, has already been poor in recent months," noted analyst Patrick Hummel from UBS. The risks associated with punitive tariffs are therefore likely to have already been priced into share prices. However, there could still be movement in the coming months, as negotiations between the EU and China as well as within the EU are continuing, according to Hummel.

The supplier Continental impressively demonstrated that good news regarding China is well received on the stock market. The company had announced the previous evening that the Chinese market was likely to gain momentum in the second half of the year. Borsians appreciated this and other statements on profitability with a share price increase of more than 8 percent./bek/men/jha/