The Federal Reserve awakes to eye first rate hike since 2006

After years of waiting, it’s finally here: Fed week. Barring a shock, the Federal Reserve will raise US interest rates tomorrow for the first time since June 2006, a full year before the global financial crisis began.

Data releases will meanwhile give clues to the robustness of other economies, some of which are seen as vulnerable to investment outflows as higher interest rates make US assets more attractive — especially in emerging markets.

Forecast-beating numbers on Saturday showing Chinese industrial output growth picked up to a five-month high of 6.2% in November signalled that stimulus measures from Beijing may be steadying the world’s second-largest economy.