A look at the day ahead in European and global markets from

Ankur Banerjee

A sleepy start to a data-heavy week will get its first test

when an inflation report for the euro zone comes out during

European hours, while investor focus will also be on Nestle

after the Kitkat maker abruptly dismissed its CEO.

Euro zone inflation is likely to have remained stable at

2.0% in August, showed economist estimates compiled by Reuters.

Data from Germany, France, Italy and Spain last week indicated

inflation stayed close to the European Central Bank's target.

The ECB left its key interest rate at 2% at its July policy

meeting and market watchers expect it to do so again this month

before discussion about further cuts resume in the autumn.

NESTLE UPHEAVAL

Nestle dismissed Laurent Freixe exactly a year

after becoming CEO for not disclosing a romantic relationship

with a subordinate.

The dismissal also came a year after predecessor Mark

Schneider's sudden departure, and two and a half months after

longstanding chair Paul Bulcke announced he would step down in

2026, amounting to one of the most turbulent periods in the food

giant's history.

Nestle's stock price has fallen more than 17% over the

past 12 months, versus a 5% gain in the pan-European STOXX 600

. Watch out for fireworks at the open.

RATE-CUT WAGERS

Meanwhile, the broader market struggled for direction as

investors geared up for a U.S. jobs report on Friday that will

influence the Federal Reserve's near-term policy path. Investors

broadly expect a 25 basis-point cut at its September meeting.

Relentless attacks on the Fed from President Donald Trump

have also kept investors wary, with Trump's efforts to fire

Governor Lisa Cook raising the prospect of him making more

dovish appointments at the central bank.

Comments from Treasury Secretary Scott Bessent stoked

further concern about the Fed's independence and credibility.

"The Fed should be independent. The Fed is independent, but

I, I also think that they've made a lot of mistakes," Bessent

said in an interview.

The dollar has remained under pressure on rate-cut wagers,

propelling gold to break above $3,500 an ounce to a record high.

The metal is up 33% this year after gaining 27% last year.

Key developments that could influence markets on Tuesday:

* Economic data: Euro zone inflation data for August