STOXX 600 rises ahead of key data and US tech earnings, energy shares cap gains
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Philips tumbles on lowering full-year sales outlook
Melrose jumps after risk and revenue sharing explainer
Sonova climbs on news of resuming supply to Costco
STOXX 600 up 0.4%
Updated with closing prices
By Ankika Biswas and Pranav Kashyap
Oct 28 (Reuters) - Europe's main stock index closed higher on Monday as gains across most sectors outweighed the weakness in energy stocks on a slide in oil prices, with investors looking for crucial economic data and big-ticket U.S. tech earnings scheduled for later in the week.
The pan-European STOXX 600 .STOXX finished 0.4% higher after logging itsfirst weekly decline in three.
The energy sector .SXEP dropped 1.3% to a near two-week low asoil prices slid after Iran downplayed Israel'sretaliatory strike over the weekend.
On the flip side, construction and materials .SXOP and media .SXMP led the charge among sectoral gainers.
Travel and leisure sector .SXTP, which houses airline stocks such as Lufthansa LHAG.DE and easyJet EZJ.L, also gained as lower oil prices translate to increased profit margins for airlines.
France's CAC 40 .FCHI, which hit a one-week high, and Spain's IBEX 35 index .IBEX were the top gainers among regional bourses.
In the face of an improving inflation trend and economic concerns that prompted a European Central Bank interest-rate cut earlier this month, the bloc's third-quarter GDP and October inflation data this week will be at the top of investors' radar.
"We are making major downward revisions to our ECB interest-rate forecast... the bank will implement back-to-back 50-bps cuts in December and January," Capital Economics' Europe team noted.
The team highlighted their expectations of meagre economic growth at the start of the fourth quarter, concerns over a loosening labour market and slowing wage growth, and significant inflation risks over the next two years.
Other factors likely to set the tone for European and other global markets include earnings from a bunch of U.S. tech giants like Apple AAPL.O and Microsoft MSFT.O this week and the Nov. 5 U.S. Presidential elections.
While markets have started pricing in a second Donald Trump administration recently, Vice President Kamala Harris is leading Trump nationally by a marginal 46% to 43%, a recent Reuters/Ipsos poll showed.
On the earnings front, Philips PHG.AS slumped 17% after the Dutch medical devices maker lowered itsannual sales outlook owing to degrading Chinese demand.
German speciality-chemicals-maker Wacker Chemie WCHG.DE shed 3% after a third-quarter miss, while French auto-parts supplier OPMobility OPM.PA rose 5% after higher third-quarter revenue .
Galp GALP.LS shed 5% after the Portuguese energy firm gave a longer-than-expected drilling timeline for Namibia's four-well Exploration & Appraisal programme.
Melrose Industries MRON.L jumped 9.8% following the aerospace components supplier's explainer for its Revenue & Risk Sharing Partnership portfolio.
Among others, Sonova SOON.S climbed 7% after Reuters reported the Swiss hearing aid maker is resuming supplies to Costco COST.O.
Reporting by Pranav Kashyap and Ankika Biswas in Bengaluru; Editing by Mrigank Dhaniwala and Tasim Zahid
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