Is it a bird? By Reuters

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

A flying octagon was the fourth object to be shot down over North America by a U.S. missile in little more than a week. Officials declined to say whether it resembled the large white Chinese balloon that was shot down earlier this month, though U.S. Air Force General Glen VanHerck is not ruling out aliens.

Markets have kept an eye on the geopolitical mystery, but more focus is on whether U.S. inflation is earthbound or stubbornly hovering.

Economists expect Tuesday data to show monthly rates ticked up in January, but the annual measures declined.

Revised figures on Friday showed that inflation in December was a little stronger than originally reported, and a closely-watched consumer inflation expectations survey showed a notable spike in the short-term outlook.

All of which has kept pressure on stocks and bonds and put some support behind the U.S. dollar, since the data will set the tone for the Fed’s next meeting in March.

The Nasdaq has now only risen once in the last six sessions, the volatility index hit a one-month high on Friday, and futures were shaky in Asia trade on Monday.

Stocks also slipped, falling most in Japan where traders are still trying to come to grips with the likely appointment of academic Kazuo Ueda as the next central bank governor and whether it means an exit from super-easy policy.

Macro data offered downbeat mood music, too. Fourth-quarter growth in bellwether Singapore was unexpectedly revised lower. Seasonally adjusted South Korean exports fell. Graphic: The BOJ’s YCC faces a reckoning, https://www.reuters.com/graphics/JAPAN-ECONOMY/BOJ/zjvqjwdaqpx/chart.jpg

Key developments that could influence markets on Monday:

– Fed’s Bowman speaks

– ECB’s Lagarde participates in Eurogroup meeting