Business News

CCTV Script 10/08/217

— This is the script of CNBC's news report for China's CCTV on August 10, Thursday.

The biggest winner in the stock market, in these seven months, in terms of rate of return is actually not the three main U.S. stock market indices that had been closing at record high due to the U.S. technology stocks. Instead, the biggest winner is actually the European stock index. Let's take a look at the summary of the top four stock indexes, after dollar-denominated stocks.

Taking up the top spot is Greek stock market which took only the first seven months of this year to achieve a return rate of 43%. Following behind is the Spanish stock market with returns of 29% and coming in third is the Italian stock market at returns of 28%. These three countries occupied the top three positions on the list.

As a result, the European stock market rose by an overall of 20%. In contrast, the US S&P 500 Index only recorded returns of 12%. In an interview with CNBC, analysts expressed a strong momentum for European economy recovery this year, whereas previously market-watchers were worried about the risks posed by various events such as the French elections and so on. Fortunately also, there were no black swan incidents.

Besides, Greece also received fundings that helped her to avert defaulting her debt. With the risks of these events subsiding, the European stock emerged to become one of the most favored stocks this year.

[David JOY, Chief Market Strategist, Ameriprise Financial] "But it's gonna be a headwind for exporters in the Eurozone. Our preference there is for more domestic producers so to speak, but nevertheless a lot of the clouds were overhanging Eurozone at the start of the year have been cleared away. Little bit of valuation as well. We think that has a little bit of upside than the US does at this point."

The increase in share price of the European banking sector was also very obvious. The Stoxx Euro 600 index rose 27% within 7 months. Unlike the Federal Reserve which is currently going through a tightening cycle, statistics showed that global central banks, that eased their monetary policies, bought a record of $ 1.5 trillion in assets, which particularly benefitted the European stock market. We will continue to keep watch.

CNBC's Qian Chen reporting from Singapore.