October - The Month Ahead

Welcome to our analysis of key dates coming up in October 2010.

Various markets experienced big moves in September, with the major stock indices managing to shake off the weakness that had dogged them in August. The US dollar, however, came under pressure, particularly from the euro which continued to claw back some of the ground lost in the first half of the year. Gold, often perceived as a safe haven, was relentless in setting fresh all-time highs.

Investors remain concerned about the fragility of the economic recovery, which means there are some potential market-moving events to watch out for during October. Keep an eye on the monthly US non-farm payrolls, which, uncharacteristically, are released on the second Friday of the month (8 October). Current expectations are for a drop of around 15,000 jobs in the USA during September.

Other big events that may result in widespread volatility are the central bank interest-rate announcements. No change to the base rate is expected, but with both the US Federal Reserve and the Bank of England refusing to rule out further quantitative easing to underpin recovery, any signs of additional measures on the horizon could see strong reaction across a range of assets.