Bill Belchere, Regional Economist, Macquarie said that he is expecting the Fed to cut the rates by 25bps which may go to 50 bps and would see a relief rally in case of 50 bps cut. He said that 50 bps cut would raise questions regarding growth. He believes that the US, EU economies may slow down in Q1 of next year. Contrary to this, he said that Asian markets with more domestic dependence will see good indutrial production figures and a softening in first half of next year may be seen. He believes that China, India and Indonesia are seeing good domectic economies. High beta markets dependant countries on exports like Taiwan and Korea may be challenged.

He further said that softer global manufacturing growth are seen and it is tough for the emerging markets outperformance. Fed's decision to cut the rates may only cause a short blip in global markets. About RBI, he said that the Indian central bank is likely to stay on hold for now and India is likley to grow at around 9%.