US Equity Markets Fall For Fourth Consecutive Day

The founder of Chinese internet search engine Baidu, Robin Li, has surpassed Wang Jianlin, chairman of the Wan-da Group, as the richest man in China. As shares in his company surged, Li's net worth has climbed 65% this year to more than $12 billion dollars. Four of China's richest people now have fortunes in excess of $12 billion. Baidu's share price has rocketed almost 70% this year as Baidu's move into smartphones and tablets in conjunction with higher traffic boosted investor optimism surrounding the company. Baidu commands an 81% share of search en-gine queries in China. It has grown from a company with less than 10 employees in 2000 to more than 17,000 today.

U.S. budget negotiations are once again back in the news as Republicans and Democrats work towards a solution to avoid another government shutdown next year. Negotiators are attempting to avert automatic spending cuts that will come into effect in January by reaching a compromise over more Federal spending. Any agreement is likely to cap spending in the budget to $1 trillion. If this issue can be resolved, Congress must then move quickly to the issue of the debt ceiling which will continue to derail the recovery in the U.S. if it remains unresolved.

U.S. equity markets have fallen for the fourth consecutive day as strength in U.S economic data continues to spur speculation of Fed tapering. This has also seen the U.S. dollar remain strong. The S&P 500 has closed 0.17% low-er at 1,792.03. The index is still 25% higher this year and looks likely to record its best annual rise since 2003. The markets now await the all important employment data to be released at the end of the week. Earlier in Europe, the DAX slumped 0.9% while the FTSE eased 0.34%.

Commodity prices have consolidated with the major indexes gaining 0.5%. WTI has had a rare positive day, rising more than 1% to $97.00 on inventories that fell for the first time in 11 weeks. Precious metals have rebounded with gold gaining 2% to $1,244 while silver surged 4% to $19.80. Copper gained 2.2%. Agricultural commodities were mixed.