– This is the script of CNBC's news report for China's CCTV on November 25, Wednesday.
Welcome to CNBC Business Daily, I'm Qian Chen.
Geopolitical tensions are again rocking markets around the globe.
We saw every asset class being impacted by those Russia- Turkey tensions from equities, to oil, to forex.
NATO is calling for calm after Russian president Vladimir Putin warned of 'serious consequences' after Ankara shot down a Russian jet it said was violating its territory.
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[Turkish Ambassador to Singapore Taner Seben ] "130928 my diploma experience, tells me that these type of reactions which come right after the incident are always harsh, but in due time, and in reasonable time, the people(?) on both sides will keep their temper and russia will also act reasonably. this is my very frank experience and belief. 130956 "
Oil prices rose Tuesday as traders priced in more geopolitical risk after Turkey downed a Russian jet fighter on the edge of Syria.
"Oil is the most affected by it. You have major pipeline infrastructure that comes through Turkey out to the Mediterranean," said John Kilduff, analyst with Again Capital. "You've got the northern Iraqi oil field controlled by the Kurds. You have a lot hanging in the balance."
Syria has not really played into the oil story since it is not a large producer, but traders have been keeping an eye on Russian involvement there for fear of an international escalation.
Some analysts think this surge is short-lived, and we will eventually come back to the fundemental picture.
Gold prices got a bid on Tuesday as the dollar rally softened and geopolitical unrest had investors scrambling for safety. But according to one top technician, the boost is nothing more than a dead cat bounce.
The U.S. dollar edged down on Tuesday as investors piled into safe-haven currencies on concerns about rising tension between Russia and Turkey, shrugging off positive data on the U.S. economy.
But the market reaction was more muted in some asset classes more than might be expected, given past responses to geopolitical events. Treasury yields were lower, but there was not a huge flight to safety trade, and some strategists said the market was responding more to the idea that the Fed could hike rates next month.
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[Ray Attrill , Co-head of FX strategy, NAB] "105328 If you look at market positioning, it seems that the biggest trades out there has been built up a long dollar position ahead of the Fed, a built up short Euro postions ahead of ECB.105339 105353 Yes, I think probably that the downing of Russian jet has contributed to sth that a non wide existing risk trade, running into that sort of key Fed and ECB events, but it doesnt seem to me that particular event is going to have major ramification on the working assumption that Russia is not going to take retaliatory action against Turkey. 105417"
The U.S. State Department issued a "worldwide travel alert" late on Monday due to increased terrorist threats, in the latest security red flag for global tourism.
The "alert" holds until February 2016.
More than 1.1 billion tourists traveled abroad in 2014, up 4.7 percent on the previous year, according to the UNWTO. International tourism receipts reached a record $1.2 trillion during the year.
Flight bookings to Paris collapsed in the week following the terrorist attacks, according to ForwardKeys. The travel data analysis firm said that net bookings- taking into account both daily bookings and cancellations - were 101 percent down on the same period last year.
Francois Cabau, an economist at Barclays, estimates that the attacks could knock 0.1-0.2 percentage points off French growth in the fourth quarter.