The latest news! Chinese and Indian foreign ministers may meet urgently in Iran! That’s what Trump would do today! Gold prices to return to 1930 above!

Asian shares mostly rebounded during Tuesday’s Asian trading session as they struggled to shrug off concerns about a sharp drop in U.S. technology stocks.

By the close, Japan’s Nikkei 225 index was up 0.81%; Australia’s ASX200 index closed 1.06% higher; South Korea’s KOSPI index closed 0.76% higher. A shares edged higher.

U.S. markets will return from the holidays as investors wait to see if high-flying U.S. technology stocks can rebound from recent losses.

While many market participants cannot point to a single factor behind the Nasdaq’s plunge, the index is already overvalued after a 75 percent jump from its March low.

“These tech stocks have become expensive, so I think their recent decline is a healthy correction,” said Masahiroshi Hikawa, senior strategist at Sumitomo Mitsui DS Asset Management.

In the current session, there are no major data releases ahead of Thursday’s European Central Bank decision. Investors will continue to focus on geopolitical risks such as the US-China situation, china-India border conflicts and Brexit negotiations.

Sino-us relations: US President Donald Trump held a White House press conference on Labor Day on Monday, renewing his talk of economic decoupling and suggesting that the US would not lose out if the two countries stopped doing business.

“We will make America the manufacturing superpower of the world, and we will end our dependence on China once and for all,” Mr Trump said. Whether it’s decoupling or imposing massive tariffs, as I’m already doing, we will end our dependence on China, because we can’t rely on China.”

According to the New York Times, three people familiar with the matter said the Trump administration is considering a ban on some or all cotton made in China’s Xinjiang region, possibly as soon as Tuesday, because of alleged human rights violations in the region.

The scope of the ban is unclear, including whether it covers cotton products shipped to Xinjiang from other countries, the report said. Large global clothing brands have identified Xinjiang as a source of cotton and other textiles.

The Situation between China and India: According to comprehensive media reports, shots were fired at the China-India border on September 7, the first time in 45 years, and tensions are on the verge of breaking out.

Indian Foreign Minister Sushma Jaishankar said Thursday that the border situation between China and India “cannot be decoupled” from the relationship between the two countries, saying that the current tension between the two countries on the border may affect china-India relations. He also said China and India needed to have a “very, very in-depth dialogue” at the political level on the current border situation.

Indian Foreign Minister Sushma Jaishankar is likely to visit Iran ahead of his four-day visit to Russia, where he is expected to hold bilateral talks with Chinese Foreign Minister Wang Yi on the china-India border dispute, according to people familiar with the matter. It has not been officially confirmed that the Foreign ministers of China and India will meet in Iran.

In currency terms, the DOLLAR remained above the 93 mark, keeping an eye on whether it could hold on to that level. Non-us currencies were mixed, with sterling among the biggest fallers.

British Prime Minister Boris Johnson on Monday set an October 15 deadline for the two sides to negotiate a trade deal, meaning Britain will walk away from the talks in preparation for ending two decades of close trade ties without a deal. The President of the European Commission, Herman von der Leyen, has urged The British Prime Minister, Boris Johnson, to abide by the commitments made by the two sides in their Agreement to leave the European Union at the end of last year, which is important for the start of bilateral trade talks.

Nomura analyst Jordan Rochesterexpects the pound to continue falling against the euro in the weeks leading up to an EU summit in mid-October, forecasting it to fall to around 0.92 ahead of the meeting.

In commodities, spot gold reversed intraday losses and is now back above $1930, having briefly approached the 1920 mark, while silver extended gains to 1 per cent.

“The rising dollar is a drag on gold, but the longer-term uncertainty that continues to haunt the market supports gold,” said Carsten Menke, an analyst at Julius Baer.

Menke said gold is likely to trade sideways “as fears of recession are priced in and investors are now waiting to see what the next step in central bank policy will be.”

Intraday weathervane:

Economic data:

17:00 Eurozone GDP for the second quarter

Trend analysis of major currencies:

Euro: the euro/dollar remained in a tight range during the day, after losing the key 1,18 level. From a technical perspective, the daily MACD green momentum column gradually expands, the RSI indicator hovered around the 50 level, and the KDJ indicator continued to fall below the 50 level, indicating the strengthening of downward momentum or further decline. Short-term initial support at 1.1780, initial resistance at 1.1850.

Sterling: Sterling hit a session low of 1.3125 against the DOLLAR after a four-day losing streak. From a technical perspective, the daily MACD green momentum column has expanded sharply, with the RSI index falling below the 50 level and the KDJ index falling below the 50 level, indicating that price bearish momentum has strengthened or continues to decline. Short-term initial support at 1.3100, initial resistance at 1.3195.

Jpy: The dollar/jPY traded in a tight range after six days of small gains and was trading around 106.20. On a technical note, the daily MACD red momentum column is turning steady, with the RSI index hovering around the 50 levels and the KDJ index also trading around the 50 levels with further volatility expected. Short-term initial support at 106.00, initial resistance at 106.55.

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