European shares began the week on a positive note after the benchmark index saw its worst day in more than a year on Friday, while investors await a slew of economic data and expect the European Central Bank to cut interest rates later in the week.

The pan-European STOXX 600 index was up 0.6% by 0815 GMT on Monday, after it posting its worst weekly performance since October 2023.

All regional bourses advanced between 0.5% and 1%.

Investors will parse through consumer price inflation figures from Germany, Spain and France due later in the week.

Britain's employment and GDP data are scheduled for Tuesday and Wednesday, respectively.

Taking centre stage is the European Central Bank's rate decision, due on Thursday. It is widely expected that ECB will cut rates by 25 basis points.

Investors have fully priced in this cut and their primary focus will be on the commentary from ECB President Christine Lagarde regarding the possibility of further cuts in October and December.

Traders will also be looking for hints from several ECB members who are scheduled to speak at various events throughout the week.

"ECB was ready, willing and able to start with consecutive rate cuts, but there is a sense that there is a caution around," Aoifinn Devitt, interim chief investment officer at London CIV, said.

"The ECB should be ready to unleash a series of cuts, but it's looking to be quite a shallow cut cycle."

A rebound of 1.3% in tech stocks boosted the benchmark index after tech stocks recorded their worst week in nearly two months.

Travel and leisure outperformed other sectors, rising 1.3%. The sub-index was boosted by a 6.7% gain in Entain after the British gambling group said the second half of this year started better than expected.

Adidas AG lost 3.5% after Barclays downgraded the stock to "equal weight" from "overweight".

Across the Atlantic, markets await U.S. consumer and producer price figures due later in the week.

On Tuesday, Democrat Kamala Harris and Republican Donald Trump will debate for the first time ahead of the presidential election on Nov. 5.

"The impact on Europe of Trump getting elected could be quite severe in terms of tariffs, and lack of cooperation," London CIV's Devitt said.

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