Finance

The latest U.S. consumer price index data showed headline inflation holding steady at an annual rate of 3.4% in August. However, a slightly warmer-than-expected core monthly increase of 0.3% has solidified market expectations, with traders placing the probability of an upcoming interest rate hike by the central bank at over 85%.

Brent and WTI crude futures eased on Friday following a week-long surge driven by rising tensions involving the United States and Iran, alongside significant pipeline disruptions in Saudi Arabia. Even with the late-week daily drop of nearly 3%, global crude benchmarks held above the $100 per barrel mark, maintaining broader upward pressure on energy costs.

U.S. sovereign bond yields ticked higher at the end of the week, with the 10-year Treasury note finishing just below the 5% threshold. Fixed-income markets continue to experience upward pressure due to a combination of persistent energy cost concerns, growing government debt, and anticipation surrounding the next monetary policy decisions.