By Pranav Kashyap

(Reuters) -European shares started the week on a positive note, as investors prepared for a busy schedule of key economic data releases and earnings from major U.S. companies.

The pan-European STOXX 600 was up 0.4% at 520.84 points, after its first weekly loss in three on Friday.

The energy sector, which fell 2%, weighed on the benchmark. Oil prices tumbled 5% after Iran downplayed Israeli strikes. [O/R]

Meanwhile, the travel and leisure sector, which includes airline stocks, was up 1%.

A large portion of airlines’ costs are tied to fuel expenses and lower oil prices translate to increased profit margins for airlines.

Luxury stocks also provided some support, gaining more than 1.3%.

Philips dropped 16.7% after the Dutch medical devices maker lowered its sales outlook for the year.

The healthcare sector ticked 0.3% lower on the news.

European Central Bank Vice President Luis de Guindos’ speech is due later in the day. Sweden’s preliminary GDP figures and September retail sales are set to be released on Tuesday.

On Wednesday, the euro zone will reveal preliminary flash GDP, consumer confidence, and economic sentiment data, while Germany will release its consumer price figures, flash GDP, and employment data.

Spain’s estimated GDP, Italy’s preliminary GDP, and the British budget are also due on Wednesday.

CPI data for the euro zone, France, and Italy will be released on Thursday.

“The data out of the euro zone should be positive. The combination of unimpressive euro zone growth and quickening disinflationary pressures means there will more room for the ECB to dial up their easing cycle,” said Elias Haddad, senior markets strategist at Brown Brothers Harriman.

Global market sentiment will be influenced by earnings from five members of the “Magnificent Seven” group of U.S. megacap companies.

Google parent Alphabet, Microsoft, Meta, Apple, and Amazon are all scheduled to report their quarterly results on Thursday.

The U.S. Presidential election, which is just a week away, is also keeping investors on their toes.

While markets have started pricing in a second Donald Trump administration in recent weeks, Vice President Kamala Harris is leading Trump nationally by a marginal 46% to 43%, a recent Reuters/Ipsos poll showed.

“There’s a bit of a consolidation period.. easing policy is supportive, but you need a big catalyst. The U.S. election and the details of China’s fiscal spending are on investors’ radar right now,” Haddad added.

(Reporting by Pranav Kashyap in Bengaluru; Editing by Mrigank Dhaniwala)

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