European markets have enjoyed an uptick in economic momentum over the past few months, leading many to believe the region may finally be getting back on its feet after sovereign debt troubles weighed on confidence over the past four years.
Yet, two risk events could change all of that in October, according to Nomura.
The upcoming Troika review of Greece's reform process and an Italian senate vote could derail recent optimism and bring about a "European structural backsliding," analysts at Nomura Equity Research said in a report.
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The European Central Bank, International Monetary Fund and European Union - dubbed the Troika - are due to arrive in Athens sometime next month to assess the pace of reforms.