The momentum is with the developed markets and China still remains the biggest risk to the global economy, said Ruchir Sharma, Author & EM Investor.
Neeraj Gambhir of Nomura India feels that economic momentum of the country is a serious worry. In an interview to CNBC-TV18, he sees the bond markets to be less affected by the numbers as it is largely driven by currency movements now.
It was spurred past the key 100 level when weekly US jobless claims fell to five-year low, just over month after the Bank of Japan unveiled a massive stimulus plan to boost the economy.
Nomura Financial Advisory & Securities expects another 50 bps hike in policy rates.
Analysts expect the Reserve Bank of India (RBI) to raise key rates by only 25 basis points on January 25 despite sticky inflation, as a slump in industrial production growth suggests some risks to economic momentum still exist.
The European Central Bank has left refinance rates unchanged at 1%. The President of the European Central Bank said that he sees short-term upward pressure on inflation but expects these inflationary pressures to be contained over the medium-term.