European stocks open lower as interest rate hike fears return

European stocks opened nearly 1 percent lower on Friday, with interest rate-sensitive technology stocks negatively affected by expectations the Federal Reserve will continue tightening monetary policy, while Mercedes-Benz and Sica rose thanks to a strong earnings announcement.

The pan-European Stoxx 600 index was down 0.9% by 0813 GMT, with technology stocks down 1.8%. US data on Thursday showed producer prices rose to a seven-month high in January, while another report showed that the number of Americans filing new applications for unemployment benefits unexpectedly fell last week, fueling expectations of a period of interest rate hikes from the US central bank.

But luxury car maker Mercedes-Benz Group rose 1.8 percent, after the company beat analysts’ estimates for annual profit with stronger revenue. Sika also rose 3.3% after the Swiss chemical company reported better-than-expected operating profit for 2022.