CCTV Script 30/08/17

— This is the script of CNBC's news report for China's CCTV on August 30, Wednesday.

Global market panic soared on Tuesday, rattled by North Korean missiles. Yesterday, during trading, Asia-Pacific stock indices fell across the board. Among them were Japan and South Korea, falling by 1% and 1.6% respectively. Yet, as missile-panic eased, the Nikkei 225, contracted at close, down by 0.5% while the Kospi fell by 0.2%. This trend is also reflected in the overnight US stocks market. As we can see the Dow opened lower at more than 130 points. Subsequently, as market panic ease restoring rationality among investors, U.S stocks closed up, with Dow up at 0.26%. It is also the Dow's biggest intraday rebound in nearly nine months. At the same time, the dollar and US Treasury yields recorded a substantial decline at the start but rebounded back subsequently. In an interview, an analyst told CNBC said that this is because Trump's statement on North Korea was not as tough as what many people have imagined to be.

On Tuesday morning U.S time, President Trump issued a statement on North Korea's missile, stating that North Korea's threatening actions will only increase its isolation in the world. Trump also said that North Korea's actions signalled its contempt for its neighbours , for all members of the United Nations and for "minimum standards of international behavior". However, the market thinks that such a statement is not as radical as Trump's previous North Korean rhetoric. Most probably, Trump is distracted by the impact of Hurricane Harvey.

[Kathy Lien, BK Asset Management, Managing Director] "I think the story here is that the reaction of the response from the Trump Adminstration has been relatively benign. We did hear that they say all options are open. These aren't very strong words, in the sense, that he didn't provide anything as specific as unleashing fire and fury on North Korea."

We clearly see a decline in risk sentiments during U.S afternoon trading hours. After an 11-month high, gold futures saw a callback. The U.S dollar index hit a 52 weeks low, at 91.63, followed by a rebound. The VIX index, which measures the market panic, soared 19% at the time of opening but eventually contracted to 4.24%. Although there is a big rebound in the US stock market, the European stock market did not meet with such fortune. On Tuesday, risk sentiments led to the STOXX 600 to fall 1.06%, under a recovery situation.

The UK FTSE fell by 0.87% while the German DAX fell by 1.46%. As for Spanish IBEX, it fell by 0.91%.

We will continue to keep watch.

CNBC's Qian Chen, reporting from Singapore.

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