Markets are suddenly nervous. After a period of extraordinary gains for equities, commodities and corporate bonds – an eight-month rally that began in March – risk aversion is back.
The mood of uncertainty first emerged in the second half of October, but if anything has deepened in the opening days of this month. That is not surprising. Central banks in the US, the UK and the eurozone are holding policy meetings this week and the US October jobs report, due on Friday, will give investors a key update on what appears to be a jobless recovery.
