News: NAB UPDATE 1-European shares fall as rate-hike worries resurface

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	  STOXX 600 still set for weekly gains 

	  Rate-sensitive technology stocks lead falls 

	  Mercedes-Benz up on earnings boost 

	  Sika rises as guidance beats expectations 

	  NatWest outlook sends shares tumbling  

(Adds comments, details updates prices throughout)

European shares slid nearly 1% on Friday as rate-sensitive technology slipped on renewed bets of the U.S. Federal Reserve sticking to its monetary tightening trajectory, while Mercedes-Benz rose on upbeat earnings.

The pan-European STOXX 600 index .STOXX slid 0.8%, with technology shares .SX8P tumbling 1.7%.

U.S. data on Thursday showed the highest rise in producer prices in seven months in January, while another report showed the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, fuelling the prospects of the Fed raising rates for longer.

Goldman Sachs said it now expects the U.S. Federal Reserve to raise interest rates three more times this year, by a quarter of a percentage point each.

"While U.S. inflation may not have moderated as quickly as expected and economic activity has held up better," said Mark Haefele, chief investment officer at UBS Global Wealth Management, "price pressures will be easing through 2023."

"Recent economic data in the U.S. continues to suggest that the economy is in better shape than many had anticipated, fuelling expectations that the Fed will have to tighten further beyond the current quarter."

French stocks .FCHI fell 0.8%, coming off record highs hit in the previous session, while Germany's DAX index .GDAXI shed 1.0%.

Still, the broader STOXX 600 was set for weekly gains of 0.6% on a boost from upbeat earnings, improving eurozone economic outlook, with certain consumer discretionary stocks, including big luxury names benefiting from the reopening in China.

Premium car maker Mercedes-Benz Group MBGn.DE rose 2.5%, beating analysts' estimate for annual earnings and posted a stronger revenue.

The European automobiles & parts sector index .SXAP was among the few sectoral gainers on the day, rising 0.2%.

Shares of Sika AG SIKA.S gained 4.3% after the Swiss chemicals company reported a better-than-expected operating profit for 2022.

UK lender NatWest NWG.L shares sank 6.9% after it warned that rising interest rates might not deliver the long-lasting earnings investors hoped for. (([email protected]; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))