Euro zone PMI at 9month high as services supports
HSBC earnings lift banking sector to 2018 highs
Euro zone shortdated yields hit multiyear highs after PMI
STOXX 600 off 0.2, tech shares fall 1.5

Feb 21 Reuters European shares slipped on Tuesday after strong economic data fuelled expectations of higher interest rates, while Londonlisted HSBC rallied on a quarterly profit surge.

The continentwide STOXX 600 index dipped 0.2 after data showed French and German economic activity moved back into growth territory, while buoyant euro zone services figures indicated a recovery in business activity had gathered steam.

The ratesensitive technology index fell 1.5.

Euro zone shortdated bond yields rose to their highest levels in more than a decade, tracking a jump in their U.S. peers as business activity in the world39;s largest economy unexpectedly rebounded in February.

Inflation readings have come down, but there are signs that core inflation and services inflation are proving sticky, said AJ Bell investment director Russ Mould.

Goldman Sachs said it was expecting the European Central Bank to raise interest rates three times this year, taking the terminal rate to 3.5 from 3.25 estimated earlier.

Investors are now focusing on the release of minutes on Wednesday from the U.S. Federal Reserve39;s last meeting, which will come as hotterthanexpected U.S. inflation data added to worries that aggressive rate hikes have not yet cooled prices to the central bank39;s…