New signs suggest that China, and not the U.S., may be the global powerhouse that lifts the world out of recession.
All around the world stock markets rebounded Wednesday on the expectation that China would expand its stimulus plan as soon as Thursday– and counterbalance the growing economic decay in the U.S. and Europe.
The upward move in world markets followed heavy selling over the last two days and bucked a fifth-straight day of declines on Wall Street.
Also helping sentiment were figures suggesting Chinese manufacturing, while contracting again in February, did so at a slower rate than the previous month. For many investors and analysts, the news signaled the country's downturn may be bottoming out.
As one of the few major economies still expanding, investors are keeping their fingers crossed that China can provide enough demand to reignite trade – and get the next bull market off and running.