Europe before the bell: STOXX set for 2% weekly fall

In terms of company news, Berlin will push for Commerzbank CBKG.DE to retain its German identity with a domestic stock market listing and to protect jobs, two people familiar with the matter said.

Otherwise, there's not much else, but some stand-back pieces are worth reading:

• Volkswagen's VOWG_p.DE overhaul has put the leader of Lower Saxony in a bind: backing deep job cuts in the carmaker's biggest restructuring in history while trying to fend off the far-right AfD party that is making gains around the country.
• Novartis NOVN.S investors are set to step up scrutiny of the Swiss group's dealmaking strategy after setbacks to drugs it acquired through mergers and acquisitions hit its shares.

(Alun John)

The short-term picture will all come down to U.S. inflation data due 1230 GMT. A hot print would come close to cementing bets on a Federal Reserve rate hike, and send short dated bond yields higher.

A softer print might offer some relief to the bond market.

CPI likely increased 0.4% last month after edging up 0.1% in July, a Reuters survey of economists predicted. Core CPI is expected to have increased 0.2%.

The medium term picture is all about energy, and the Middle East, however. The latest worry for markets is news Iran-aligned Houthis have gained further leverage over the Bab el-Mandeb Strait, the southern outlet of the Red Sea and one of the world's most important shipping routes.