Aramco Is Fast Closing In for Top Market Cap Spot

Aramco Is Fast Closing In for Top Market Cap Spot
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Aramco Is Fast Closing In for Top Market Cap Spot

Aramco Is Fast Closing In for Top Market Cap Spot

Oil giant Saudi Aramco is narrowing the gap with Apple Inc. for the title of the world’s most valuable company.

Benefiting from oil prices hitting the highest since 2008, Aramco shares have jumped 15% in less than three weeks, giving it a market capitalization of over $2.3 trillion, Bloomberg reported.

Shares in iPhone maker Apple, meanwhile, have fallen 9% this year amid a broad market selloff, reducing its market value to about $2.6 trillion.

Though Aramco is still more than 10% away from reclaiming the top spot, the continued surge in energy prices as countries impose sanctions on Russia’s oil has raised the possibility.

“Everybody wants to stick to commodities,” said Mazen al-Sudairi, Al Rajhi Capital’s Head of Research.

With oil at $130 a barrel, Aramco’s earnings -- due later this month -- are set to get a big boost, giving the oil giant room to increase its dividend, Bloomberg quoted him as saying.



Gold Holds in Narrow Range as Spotlight Shifts to US Jobs Data

FILE PHOTO: 24 karat gold bars are seen at the United States West Point Mint facility in West Point, New York June 5, 2013.  REUTERS/Shannon Stapleton/File Photo
FILE PHOTO: 24 karat gold bars are seen at the United States West Point Mint facility in West Point, New York June 5, 2013. REUTERS/Shannon Stapleton/File Photo
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Gold Holds in Narrow Range as Spotlight Shifts to US Jobs Data

FILE PHOTO: 24 karat gold bars are seen at the United States West Point Mint facility in West Point, New York June 5, 2013.  REUTERS/Shannon Stapleton/File Photo
FILE PHOTO: 24 karat gold bars are seen at the United States West Point Mint facility in West Point, New York June 5, 2013. REUTERS/Shannon Stapleton/File Photo

Gold prices were stuck in range-bound trade on Thursday as investors awaited US non-farm payrolls data that could influence the Federal Reserve's timeline for interest rate cuts.

Spot gold edged down by 0.1% to $3,352.59 an ounce by 0801 GMT. US gold futures rose 0.1% to $3,363.10.

"Gold is looking for new triggers," said WisdomTree commodities strategist Nitesh Shah.

"We had slightly weak ADP data that could potentially point to a little bit of weakness in underlying labor markets, which has been a little bit of a support for gold, but the non-farm payrolls could be a trigger point later."

Data released by ADP showed US private payrolls dropped by 33,000 jobs in June, marking the first decline in more than two years.

The non-farm payrolls report due at 1230 GMT on Thursday is expected to show an addition of 110,000 jobs in June, down from 139,000 in May, according to a Reuters poll.

US equities climbed to record highs after President Donald Trump announced that the US has struck a trade deal with Vietnam, including a 20% tariff on exports to the United States. He has also expressed optimism about a deal with India.

"More trade deals at lower tariffs could build some confidence that inflation will remain benign, thus allowing the Fed to ease monetary policy," ANZ analysts said in a note.

Non-yielding gold tends to perform well when interest rates are low and during times of political and financial uncertainty.

In other precious metals, spot silver rose 0.1% to $36.93 an ounce and platinum was steady at $1,417.85, hovering near a more than 10-year high hit last week, while palladium was up 0.1% at $1,155.97.