This week in the markets was a tale of green shoots and heightened expectations. London wrapped up the week with a flourish, buoyed by growing anticipation of a potential 50 basis point cut from the Federal Reserve.

The FTSE 100 edged up 0.4%, closing at 8,273.09, while the FTSE 250 surged 1.0% to end at 20,895.37. The AIM All-Share also saw a modest rise of 0.5%, finishing at 745.23.

For the week, the FTSE 100 climbed 1.1%, the FTSE 250 leapt 2.0%, and the AIM All-Share enjoyed a 0.1% gain.

Across the Channel, European markets were also in fine form. The CAC 40 in Paris rose 0.4%, and the DAX 40 in Frankfurt was up 0.9%.

In the US, Wall Street was just shy of record highs, with the Dow and S&P 500 nearing their all-time peaks, while the Nasdaq advanced by 0.5%. New York’s optimism was fueled by a stronger-than-expected consumer sentiment report for September, reaching its highest point since May.

The week’s buzz centered on speculation over the Fed’s next move. Could a surprise 50 basis point rate cut be on the horizon? Former FOMC member Bill Dudley made a compelling case for such a cut, while the Wall Street Journal painted a picture of the Fed grappling with a dilemma between inflation risks and job market conditions.

Brown Brothers Harriman highlighted that the so-called ‘Fed whisperer,’ WSJ reporter Nick Timiraos, once again stirred the pot. BBH noted a dramatic shift in rate expectations, suggesting that next week’s decision could be a tight call.

The CME FedWatch tool reflected this uncertainty, with the odds of a 50 basis point cut rising to 50% on Friday from 28% on Thursday, and as low as 15% earlier in the week.

This market speculation nudged the dollar lower, trading at 140.53 yen. The weaker dollar provided a boost for gold, which spiked to $2,584.76 per ounce.

Gold miners led the charge on the FTSE 100, with Fresnillo and Endeavour climbing 5.7% and 11%, respectively, as they capitalized on the rising gold price. Hochschild Mining also saw a 4.0% increase. In contrast, AstraZeneca lagged behind, falling 1.0% after a tough week marred by a disappointing drug trial update. Deutsche Bank’s downgrade and lowered price target only added to the pharmaceutical giant’s woes.

Flutter Entertainment made a splash with a 0.1% gain, securing a major stake in Brazil’s gambling market with a $350 million investment in NSX Group. Shore Capital Markets analyst Greg Johnson praised the move, seeing it as a strategic expansion.

Vodafone rose 1.1%, despite concerns from the UK Competition & Markets Authority about potential price hikes from a merger with Three. The CMA has set a deadline of September 27 for possible remedies, with a final decision due on December 7.

Balfour Beatty gained 0.5% after clinching a £363 million contract with National Grid to deliver the Bramford to Twinstead reinforcement project, highlighting its growing presence in the energy security and transition market.

Looking ahead, the economic calendar is packed with central bank meetings, with the US Federal Reserve, Bank of England, and Bank of Japan all poised to make key interest rate decisions next week.

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