12:04 PM EDT, 09/02/2025 (MT Newswires) -- The European stock markets closed lower in Tuesday trading as the Stoxx Europe 600 shed 1.47%, Germany's DAX tumbled 2.21%, the FTSE 100 fell 0.87%, France's CAC lost 0.70%, and the Swiss Market Index was down 0.72%.

Euro area annual inflation was an estimated 2.1% in August, up from 2.0% in July, while monthly inflation was an estimated 0.2%, according to a flash estimate from Eurostat, the statistical office of the European Union.

The highest annual inflation rates were in Estonia (6.2%), Croatia (4.6%), and Slovakia (4.4%), while the lowest inflation was in Cyprus (-0.1%), followed by France (0.8%), Italy (1.7%), and Ireland (1.8%).

Eurostat said the main contributors to the inflation rate were likely to be rising food, alcohol, and tobacco prices, which was an estimated 3.2% in August, down from 3.3% in July. Services also contributed to the inflation at 3.1%, compared with 3.2% in July.

And in corporate news, the European Union paused its plan to fine Alphabet's Google on Sept. 1 for allegedly abusing its dominant position in advertising technology due to fears that US President Donald Trump will retaliate by derailing the bloc's trade deal with the US, Bloomberg reported Tuesday, citing people familiar with the matter.

Google did not immediately reply to a request for comment from MT Newswires.

Nestle said Monday it named Philipp Navratil as its chief executive, which was effective immediately. Navratil succeeds Laurent Freixe, who was dismissed for breaching the company's business conduct code by having a romantic relationship with a direct subordinate.

"This was a necessary decision. Nestle's values and governance are strong foundations of our company. I thank Laurent for his years of service at Nestle," Chairman Paul Bulcke said in a statement.

Shares of the Swiss food and drink conglomerate were down 0.44% in Zurich.

Eni shares are due a "breather" after a "strong" run as its valuation is now comparable to peers and makes the risk-reward "less compelling" amid uncertainty over Chief Executive Claudio Descalzi's potential transition when his term ends in 2026, RBC Capital Markets said in a Tuesday report.

The Italian energy company's execution on the divestment front and exploration success have bolstered its balance sheet and driven recent outperformance despite macroeconomic volatility, the analysts said.

Shares of Eni dropped 1% in Milan.