By Greg Peel

The Dow closed up 60 points or 0.5% while the S&P added 0.4% to 1293 and the Nasdaq gained 0.6%.

The Australian market showed strength from the bell yesterday, regaining about three quarters of what was lost on Monday. European stock markets had not tanked on the downgrade news, as was likely the fear, and moreover France was able to borrow one-year money at a rate cheaper than only a week ago. But late morning the ASX 200 got its real kick and that was all about China.

While China has often been in the background as the European tragedy has played out, its presence has always been strongly felt. Would Europe ? China's largest export customer ? derail China's growth and subsequently send the global economy into recession? Fighting its own domestic inflation issues, Beijing has been forced to finely balance its monetary policy implementation with conflicting forces in mind, all with the intention of bringing the world's fastest growing economy in for a soft, and not a hard, landing.