Oil Price Surge Fans Fed Rate Hike Fears

Investors are bracing themselves for a potential Federal Reserve rate hike next week after high oil prices and record US inflation data were released on Friday.

The US consumer price index remained unchanged at 3.4 percent in August, in line with analyst expectations but above the Fed's two percent target.

European Central Bank officials raised eurozone borrowing costs citing energy cost effects from a Middle East conflict, which has broadened since an Iran-backed Houthi offensive in Yemen.

Cresset Capital Management's Jack Ablin pointed to relief that inflation figures weren't worse, saying 'It came in as expected. Investors are resigned to the fact that the Fed is going to raise rates next week.'