CCTV Script 13/09/16

This is the script of CNBC's news report for China's CCTV on September 13, Tuesday.

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

As volatility has picked up in the last two days, traders are parsing the latest Fedspeak and other factors that could determine whether stocks hold their gains.

For now, traders will weigh historically dovish Boston Fed President Eric Rosengren's hawkish tilt on Friday against Fed Governor Lael Brainard's caution Monday on tightening too quickly.

Speaking in Chigaco, Ms Brainard said the risk that higher rates would damage a fragile US economy exceeded the risk that higher rates would increase inflation.

Both Fed speakers have historically had a dovish position, favoring lower rates for longer.

After Brainard's remarks, the S&P 500 rallied nearly 1.5 percent Monday in its best day since July 8 to close at 2,159, with telecommunications and consumer staples leading all 10 sectors higher. The other defensive and rate-sensitive sector, utilities, dragged all the sectors lower Friday as the S&P fell 2.45 percent in its worst day since June 24, after the surprise U.K. vote to leave the European Union.

[DIANE SWONK, DS Economics Founder & CEO] "The issue is, it's not the size of the move, it's that even small moves would have this sort of "outside reactions" and think about it, it's backdrop of negative rates elsewhere, it is something Brainard really focusesd in on."

Chances of a rate hike at the Fed's next meeting immediately slumped after news of Brainard's speech broke.

The Fed has now entered a blackout period until the Federal Open Market Committee's (FOMC) two-day meeting on September 20-21.

CNBC's Qian Chen, reporting from Singapore.

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