STOXX 600 still set for weekly gains
Ratesensitive technology stocks lead falls
MercedesBenz up on earnings boost
Sika rises as guidance beats expectations
NatWest outlook sends shares tumbling

Feb 17 Reuters European shares slid nearly 1 on Friday as ratesensitive technology slipped on renewed bets of the U.S. Federal Reserve sticking to its monetary tightening trajectory, while MercedesBenz rose on upbeat earnings.

The panEuropean STOXX 600 index slid 0.8, with technology shares 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 fell 0.8, coming off record highs hit in the previous session, while Germany39;s DAX index shed…