In the United States, labor market as well as consumption shown a solid rebound in October. The global manufacture, which was facing low factory utilization rates and high inventories, will be encouraged after seeing the positive sign in the US consumption figure.
The ISM nonmanufacturing index of the economy posted a robust growth rate in October and reached to 59.1. Similarly, service sector is also expected to rebound soon.
The rate hike assumption was extended to March 2016, as the volatility in financial markets is unlikely to stay for a long and the Fed may face difficulty to resolve its differences about the possibility of rate hikes before year-end, says Barclays.
The solid payroll report caused the analysts to change their rate hike to expectation from December 2015 to March 2016.
"We now forecast a federal funds range of 25-50bp in December, up from the current 0-25bp range", states Barclays.
