Long road ahead to global recovery but main players are on right track

IF market expectations are correct and the US Federal Reserve decides to raise interest rates on Dec 16, it will be the start of what could be a long road to normalisation - whatever that is.

For the rest of the world, however, the shadow of recession is still present. When the Fed raises the federal funds target rate, it will be a signal that the US economy is displaying enough strength to begin weaning it off its monetary crutches.

That would normally be positive news for markets around the world, especially for countries such as Singapore that have significant trade links with the United States. Unfortunately, the US is no longer the economic powerhouse that it once was, and today China is another counterweight that global economies must reckon with. The bad news is that China today is staring at a recession just as the US recovery seems to be picking up steam.