Here’s why the global reflation trade can survive China’s credit slowdown
MarketWatch
4/30/2021
MARKET EXTRA
Could a tightening of China’s lending spigots put an end to the global reflation trade in global stock markets this year as the world economy recovers from the coronavirus pandemic?
Though previous slowdowns in Chinese lending have sparked market volatility, some argue this time will be different as the U.S.’s fiscal largesse may be replacing China as the engine of global growth for the first time in two decades.
The International Monetary Fund predicted as much in its latest forecasts, estimating the U.S. economy to expand 6.4% in 2021.