CCTV Script 08/03/16

– This is the script of CNBC's news report for China's CCTV on March 8, Tuesday.

Welcome to CNBC Business Daily, I'm Qian Chen.

Oil, the black gold, is on a roll, gaining 12% for the past week.

U.S. crude gained over 5 percent Monday as investors rotated more assets into raw materials and oil buying was encouraged by talk that OPEC producers want a higher anchor price.VO)

Oil prices also got a boost from data showing a smaller-than-expected build in stockpiles at the Cushing, Oklahoma delivery hub for U.S. crude futures. But some analysts cautioned that the global crude glut remained large.

Oil analysts said improved sentiment towards risk assets, rather than fundamentals, was the real reason for the support seen in oil prices and supply and demand concerns have not changed.

Meanwhile, data from the InterContinental Exchange (ICE) published on Monday showed that hedge fund and money managers have hiked their long positions, or bets, on the price of oil rising to record highs.

Investors have increased their net long positions in internationally traded Brent crude from 22,171 lots to 342,460 in the week to March 1, which is the highest level on record, since ICE began collecting data in 2011. Oil prices are now up over 40 percent on their lows for the year, as prices slumped to levels not seen since 2003 in January.

Options that allow their owners to buy crude oil for $40 or above have seen notably more buyers and sellers compared with all other strike prices. Calls that expire in May and June have higher levels of open interest at $40 than at any other level. On Monday, call contracts that expire in April saw the highest trading volume in the $40 strike.

Global head of flow strategy and solutions at Societe Generale, Kokou Agbo-Bloua said he expects oil prices to stabilize, with a $50 target by the end of the year.

Global crude prices have risen more than 40 percent since hitting 12-year lows less than two months ago.

The rebound has also been driven by chart-related buying and asset rotation by investors, which resulted in higher allocations into commodities such as oil and metals, as well as equities.

U.S. stocks closed mixed Monday, steadying after their first three-week rally of the year so far, as gains in energy stocks offset declines in technology.

The Dow Jones industrial average posted its first five-straight days of gains since October. Chevron, IBM and Exxon Mobil contributed the most to gains. Visa and Nike were the greatest contributors to declines.

The Nasdaq composite underperformed as the only index of major three to close a touch lower, weighed by declines of about 2 percent or more in shares of Microsoft, Facebook, Amazon and Alphabet.

CLN SQ BOX 03_08_2016 0700

[LIZ ANN (t) SONDERS, Charles Schwab Chief Investment Strategist & Senior V.P.] "071923 So the sector under the most strain, once it found its leg, so did the market. You saw the same thing happened in 2009 with the financials and I think to some degree, you're seeing it here too. As related to energy, high yields spreads have come in, so you are seeing it across the board, and some of its financial conditions have loosened up a little bit, which is another reason that I think the rate hike at some point later this year is back on the table. 071947"

CNBC's Qian Chen, reporting from Singapore.

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