Emerging markets become growing concern

THE world economy should finally overcome its hangover from the global financial crisis this year as growth picks up and house prices rise, but reduced US monetary stimulus will pose a challenge.

After months of angst, investors will see how the US Federal Reserve handles its decision to curtail its policy of easy money, starting from this month.

US jobs data on Friday will give markets a sense of the pace at which the Fed plans to pare back its bond-buying programme, while minutes on Wednesday from its Dec 18 meeting will throw light on the central bank’s thinking.