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

With investors' focus squarely on U.S. inflation data, due later on Tuesday, markets have had a muted Asian session, although traders remain transfixed by the battered yen's relentless march towards a three-decade low.

European bourses too look set for a quiet open, futures markets show, but data on euro zone Q3 flash GDP and UK average weekly earnings for October will likely influence the market, while investors digest a cabinet reshuffle in Britain that included David Cameron's return as foreign minister.

Economists polled by Reuters expect headline U.S. consumer price inflation to slow to 3.3% in October from 3.7% in September, with the core inflation rate that strips out volatile components seen unchanged from September at 4.1%.

Federal Reserve policymakers have kept the option of further rate hikes on the table, with Fed Chair Jerome Powell saying last week they were still not sure rates are high enough to tame inflation.

Strong data could put even more pressure on the fragile yen, which touched a one-year low of 151.92 per dollar on Monday and was last at 151.65, while holding within a very tight range in Asian hours. If the battered currency breaks through last year's trough of 151.94, it would mark a 33-year low.

The yen's latest stumble brought fresh verbal warnings from Tokyo. Japanese Finance Minister Shunichi Suzuki said on Tuesday that the government would take all possible steps necessary to respond to currency moves, repeating his usual mantra that excessive swings were undesirable.

In the corporate world, investors will keep an eye on Europe's most valuable company, Novo Nordisk. Shares of the Danish drugmaker rose on Monday after data showed that the heart-protective benefits of its popular obesity drug Wegovy are not solely due to weight loss.

With a mixed picture of U.S. consumer demand emerging over the past quarter, earnings results from Walmart and Target on Wednesday and Thursday respectively will shed light on U.S. retailers' prospects as they head into Black Friday.

A Reuters analysis showed that excess stocks might hamstring the retail sector during the holiday season for a second straight year, squeezing profit margins while shoppers can look forward to deep discounts.

Key developments that could influence markets on Tuesday:

Economic events: UK average weekly earnings for September, Euro Zone Q3 flash GDP, Euro Zone employment flash Q3

(Reporting by Ankur Banerjee; Editing by Edmund Klamann)