October produced mixed results across global markets. The Australian share market was one of the stronger performers, with the S&P/ASX 200 rising 1.4% to finish the month at 8,908 points, while the UK FTSE 100 gained 1.2%. The US S&P 500 eased 0.9%, while Asian markets were weaker, with Japan's Nikkei falling 5.2% and Hong Kong's Hang Seng declining 5.4%.

The Australian dollar also strengthened during the month, rising 1.3% against the US dollar to around US70.4 cents. There was no Reserve Bank of Australia (RBA) Board meeting during October, with the cash rate remaining at 4.60%.

September was a weaker month for investment markets as investors digested another increase in Australian interest rates and ongoing concerns that inflation may take longer than expected to return to target levels.

The S&P/ASX 200 Index fell 3.2% during the month, closing at 8,789 points. International markets were also generally softer, with the US S&P 500 falling 0.5%, the UK FTSE 100 declining 2.0% and Hong Kong's Hang Seng Index falling 3.7%. Japan's Nikkei Index was one of the few major markets to finish higher, rising 0.7%.

Inflation has once again become the dominant theme for investors, consumers and policymakers as attention turns to the Reserve Bank of Australia's September meeting. While the Reserve Bank left the cash rate unchanged at 4.35% p.a. during its August meeting, recent inflation data has increased speculation that further rate increases may be required in coming months.

Australian share markets delivered a modest gain during August, with the S&P/ASX 200 Index rising 1.1% over the month to close at 9,076 points.