DAILY MARKETS BRIEF I LOCAL MARKETS

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1 DAILY MARKETS BRIEF I LOCAL MARKETS BEIRUT STOCK EXCHANGE Last Daily % YTD % Dividend % MSCI Lebanon % -9.61% Development and Reconstruction Solidere A % -9.61% Solidere B % -8.65% Banking Audi Listed % % 10.96% BLC Listed % 0.00% BOB Listed % 0.00% Byblos Listed % -7.50% 9.48% BEMO Listed % 20.77% 3.41% BLOM Listed % % 10.75% Trading RYMCO % 1.54% Industrial Holcim % 11.96% 14.75% Ciments Blancs % 26.22% MSCI LEBANON INDEX - 30 DAYS CHART LEBANESE SOVEREIGN CURVE The value of trade between the UAE and China in 2017 grew to $53.3 billion, compared to $46.3 billion in the previous year, an increase of 15.1 percent. A report on the non-oil foreign trade exchange between the UAE and China said that this increase is the result of the rise in reexports as well as a growth in imports. Unemployment among Saudi citizens edged up to a record 12.9 percent in the first quarter of this year as private employers struggled under the weight of a new tax and a domestic fuel price hike, official data showed Thursday. GCC EQUITY INDICES Last Price Daily % YTD % Bahrain % -0.07% Kuwait % 3.52% Oman % % Qatar % 8.64% KSA % 13.16% Dubai % % Abu Dhabi % 4.66% LOCAL/GCC FOREIGN EXCHANGE Cross Last Price Lebanese Pound Spot /LBP Bahraini Dinar Spot /BHD Kuwaiti Dinar Spot /KWD Omani Rial Spot /OMR Qatari Riyal Spot /QAR Saudi Riyal Spot /SAR UAE Dirham Spot /AED Source: Daily Star, Gulf Base MSCI GCC INDEX - 30 DAYS CHART GCC INDICES DAILY PERFORMANCE

2 DAILY MARKETS BRIEF I EQUITY MARKETS UNITED STATES EQUITY MARKET INDICES Last Price Daily % YTD % 10D Vol Major Indices DowJones % -1.47% 0.52% S&P % 2.36% 1.08% Nasdaq % 9.89% 1.53% Sectors Indices Discretionary % 10.95% 0.53% Staples % -8.92% 3.32% Energy % 4.23% -2.85% Financials % -5.07% 0.38% Healthcare % 2.63% 1.72% Industrials % -5.29% -0.91% IT % 11.34% 2.29% Materials % -3.87% 0.02% Telecom % -9.20% -0.40% Utilities % 0.14% -0.01% Real Estate % 0.37% 1.81% S&P 500 INDEX - 30 DAYS CHART S&P 500 SUPPORT & RESISTANCE U.S. equities rose ahead of the release of the Federal Reserve minutes and the imposition of tariffs on $34b worth of Chinese goods. European stocks advanced for a third day on speculation the U.S. will drop a threat to impose higher tariffs on the region s cars. Autos led gains after a report that Washington and Europe are working together to reach a solution on car tariffs. Asian shares largely fell yesterday in anticipation of the planned implementation of trade tariffs. Japan s Nikkei index was roughly flat before opening higher in today s session. INTERNATIONAL MARKETS INDICES Last Price Daily % YTD % 10D Vol World % -1.43% -0.05% Developed % -0.35% 0.32% Emerging % -8.99% -1.59% Frontier % % 1.57% Europe % -2.06% -1.72% Latin America % % -4.49% Asia Pacific % -6.45% -0.40% INTERNATIONAL EQUITY INDICES Last Price Daily % YTD % 10D Vol EuroStoxx % -1.80% -1.37% FTSE % -1.10% -3.11% CAC % 1.01% -1.91% DAX % -3.51% -0.15% Swiss SMI % -7.54% -3.79% Nikkei % -4.29% -1.39% CSI % % -0.85% DEVELOPED VS EMERGING - 30 DAYS CHART EMERGING DEVELOPED INTERNATIONAL EQUITY - 30 DAYS CHART FTSE 100 CAC 40 DAX NIKKEI 225 Source: Bloomberg, Financial Times

3 DAILY MARKETS BRIEF I FOREIGN EXCHANGE FOREIGN EXCHANGE MARKET Last Price Daily % 10D Vol 25RR Major Cross Rate Index % -0.02% - EUR/ % -0.37% /JPY % -0.37% GBP/ % -0.06% /CAD % -0.20% AUD/ % -0.05% NZD/ % 0.51% /CHF % -0.06% /NOK % -0.04% /SEK % 0.00% /CNY % -0.30% Major EUR Cross Rate EUR/GBP % -0.24% EUR/CHF % -0.33% EUR/JPY % -0.05% DISTANCE FROM 52 WEEKS LOW/HIGH The dollar falls for a third day after hawkish comments from European central bankers and less concern that an EU-U.S. tariff battle will erupt over autos. The Euro gained yesterday and held near three-week highs on Thursday as strong German industrial orders weighted. German industrial orders had a stronger than expected increase in May after four consecutive monthly drops The British Pound edged higher after the BoE governor Carney kept hopes of an August rate hike alive before paring gains later in the afternoon. EUR/ 30 DAYS SUPPORT & RESISTANCE Source: Bloomberg, Financial Times GBP/ 30 DAYS SUPPORT & RESISTANCE /JPY 30 DAYS SUPPORT & RESISTANCE /CAD 30 DAYS SUPPORT & RESISTANCE

4 DAILY MARKETS BRIEF I FIXED INCOME GLOBAL BOND INDICES Yield Yield (in Bps) Benchmark Indices US 10 Years Benchmark EU 10 Years Benchmark UK 10 Years Benchmark Sovereign Bonds US Treasury Bond Eurozone Sovereign Bond Japan Sovereign Bond US TREASURIES YIELD CURVE EUR GENERIC YIELD CURVE Corporate Bonds US Corporate TR US High Yield Bond TR EUR Aggregate Corporate TR EUR High Yield TR Emerging Market IG & HY U.S Treasury yields were little changed after the release of Fed minutes. The FOMC published the minutes from its latest central banking Thursday with some members expressing concern over an overheating economy. German bunds declined amid the Euro s advance on news that policy makers don t expect a rate increase until December An increase in German industrial orders for the month of May also weighted in. Gilts were slightly volatile following BoE governor Carney s speech before finishing lower. OVERNIGHT RATES - SWAPS Yield Yield (in Bps) 3M LIBOR M EUR EURIBOR M GBP LIBOR Y SWAP Y SWAP Y SWAP Y SWAP Spread (in FIXED INCOME SPREADS r Spread Bps) 3M vs 10Y Spread Spread Spread (in Bps) 2Y 3M vs vs 10Y 10Y Spread IG 2Y Spread vs 10Y Spread (0.0100) (0.0262) HY IG Spread Spread (0.0800) (0.0100) HY Spread EU vs US 10Y Spread (0.0391) EU vs US 10Y Spread (0.0024) EU vs US 2Y Spread (0.0601) EU vs US 2Y Spread (0.0080) EM vs Benchmark Spread (0.0140) EM vs Benchmark Spread Source: Bloomberg, Financial Times CORPORATES - 30 DAYS SPREAD EU VS US - 30 DAYS SPREAD

5 DAILY MARKETS BRIEF I COMMODITIES GLOBAL COMMODITIES MARKET Last Price Daily % Commodity Index % Energy WTI Crude Future % Brent Crude Future % NYMEX Gasoline % NYMEX Heat Oil % ICE Gasoil % NYMEX Natural Gas % COMMODITY INDEX SUPPORT & RESISTANCE WTI OIL 30 DAYS SUPPORT & RESISTANCE Precious Metals Gold Spot $/Oz % Silver Spot $/Oz % Platinum Spot $/Oz % Palladium Spot $/Oz % Gold Future % Silver Future % Platinum Future % Palladium Future % Base Metals LME Aluminum % LME Copper % LME Zinc % LME Nickel % LME Lead % LME Tin % Agricultural Corn CBT % Wheat CBT % Soybeans CBT % Bean Meal CBT % Rough Rice CBT % MDE Palm Oil % Soybean CBT % Coffee ICE % Sugar #11 ICE % Cotton #2 ICE % Cocoa ICE % Ethanol CME % Lumber CME % Orange Juice ICE % Live Cattle CME % Feeder Cattle CME % Lean Hogs CME % Oil dropped the most in almost three weeks after a surprise increase in American stockpiles and moves by Saudi Arabia to cool a rally. Gold prices ended higher Thursday, buoyed by weakness in the dollar. After the FOMC s June meeting offered no inclination to pause further rate hikes, gold also edged lower. Source: Bloomberg GOLD 30 DAYS SUPPORT & RESISTANCE SILVER 30 DAYS SUPPORT & RESISTANCE

6 DAILY MARKETS BRIEF I COMPANY NEWS S&P 500 Stocks TOP 10 WINNERS Ticker Last Price Daily % QORVO INC QRVO SKYWORKS SOLUTIO SWKS QUALCOMM INC QCOM CONAGRA BRANDS I CAG NEWELL BRANDS IN NWL NORDSTROM INC JWN XILINX INC XLNX ADV MICRO DEVICE AMD EQUINIX INC EQIX KELLOGG CO K S&P 500 Stocks TOP 10 LOSERS Ticker Last Price Daily % CF INDUSTRIES HO CF MARATHON OIL MRO HOLLYFRONTIER CO HFC L BRANDS INC LB ABIOMED INC ABMD TECHNIPFMC PLC FTI UNDER ARMOUR-A UAA GAP INC/THE GPS ALBEMARLE CORP ALB MARATHON PETROLE MPC S&P 500 DISTRIBUTION S&P VOLATILITY INDEX LOSERS WINNERS LOW VOLATILITY HIGH VOLATILITY Samsung Electronics projected its first profit decline in seven quarters, as the strong performance of its chip business was dented by slowing sales of premium smartphones and display panels. JP Morgan is the latest bank to begin moving staff out of London ahead of Brexit. The U.S bank warned that its U.K workforce could be reduced by 4,000 after Brexit with several staff being asked to consider relocation from the U.K. Rolls-Royce has agreed to sell is lossmaking commercial marine business to Norwegian defense contractor Kongsberg Gruppen for 500m as the company ramps up its consolidation efforts. Netflix has announced that it is testing a new premium service in Europe with a higher subscription fee which, will allow subscribers to watch content in 4K. According to a report in the Wall Street Journal, preparations have stalled in the IPO of Saudi Aramco after more than two years of preparation with Saudi officials remaining tight-lipped about further developments. Automobile stocks such as Renault, GM, and BMW are revving up after the U.S. is reported to be in discussions with Germany auto execs on a plan to eliminate tariffs on both sides of the Atlantic. Sources: Seeking Alpha, Financial Times

7 DAILY MARKETS BRIEF I ECONOMIC DATA Banque BEMO sal KEY ECONOMIC INDICATORS Country Event Surv (M) Actual Prior Time Canada Unemployment Rate 5.80% % 15:30 Canada Net Change in Employment 20.0k k 15:30 Canada Int'l Merchandise Trade -2.20b b 15:30 Canada Full Time Employment Change :30 France Trade Balance -5050m m 9:45 Germany Industrial Production SA MoM 0.30% % 9:00 Germany Industrial Production WDA YoY 1.50% % 9:00 Italy Retail Sales MoM 0.50% % 11:00 Italy Retail Sales YoY % 11:00 Japan Labor Cash Earnings YoY 0.90% 2.10% 0.80% 3:00 Japan Leading Index CI :00 Japan Household Spending YoY -1.50% -3.90% -1.30% 2:30 Russia CPI YoY 2.20% % Russia CPI Core MoM 0.30% % Russia CPI MoM 0.40% % United Kingdom Halifax House Prices MoM 0.20% % 10:30 United Source: States Bloomberg Change in Nonfarm Payrolls 195k k 15:30 United States Unemployment Rate 3.80% % 15:30 United States Trade Balance -$43.7b -- -$46.2b 15:30 United States Change in Manufact. Payrolls 15k -- 18k 15:30 United States Baker Hughes U.S. Rig Count :00 Head Office - Private and Corporate Banking 96 Pasteur Building, Pasteur Street, Medawar Area, P.O. Box: , Beirut - Lebanon Tel: Fax: Disclaimer: This report is published for information purposes only. The information herein has been compiled from, or based upon sources considered to be reliable (Bloomberg, SeekingAlpha, DailyStar ), but we do not guarantee or assume responsibility for its completeness and accuracy. This document should not be construed as a solicitation to take part in any investment, or as constituting any representation or warranty on our part. This report is not to be relied upon in substitution for the exercise of specialists. We may not have taken any steps to ensure that the securities referred to in this report are suitable for any particular investor. The investments and services contained or referred to herein are not purported to be exhaustive, any person considering an investment should seek specialist advice on the suitability of an investment. Nothing in this report constitutes investment, legal, accounting or tax advice, or a representation that any investment or strategy is suitable or appropriate to your individual circumstances, or otherwise constitutes a personal recommendation. Clients understand that it is their responsibility to seek legal and/or tax advice regarding the legal and tax consequences of their investment transactions. The consequences of any action taken on the basis of information contained herein are solely the responsibility of the recipient. Investment instruments are subject to risk, including possible loss of principal amount invested. Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is made regarding future performance. The value of securities and financial instruments is subject to exchange rate fluctuation that may have a positive or adverse effect on the price or income of such securities or financial instruments. Some investments mentioned in this report may have a high level of volatility. High volatility investments may experience sudden and large falls in their value causing losses when that investment is realized. Some investments may not be readily realizable and it may be difficult to sell or realize those investments, similarly it may prove difficult to obtain reliable information about the value, or risks, to which such an investment is exposed. This report may provide the addresses of websites or references. We have not reviewed any such site and takes no responsibility for the content contained therein. Such address or reference is provided solely for convenience and information. Accessing such website through this report shall be at the recipients own risk.