European shares open lower as rate-hike worries resurface

(Reuters) - European shares opened nearly 1% lower on Friday as rate-sensitive technology shares were hit by renewed bets of the U.S. Federal Reserve sticking to its monetary tightening trajectory, while Mercedes-Benz and Sika rose on upbeat earnings.

The pan-European STOXX 600 index slid 0.9% by 0813 GMT, with technology shares tumbling 1.8%.

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.

On the bright side, premium car maker Mercedes-Benz Group rose 1.8%, beating analysts' estimate for annual earnings and posted a stronger revenue.

Shares of Sika AG gained 3.3% after the Swiss chemicals company reported a better-than-expected operating profit for 2022.

(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Sherry Jacob-Phillips)