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 % % Development and Reconstruction Solidere A % -9.61% Solidere B % -7.77% Banking Audi Listed % % 10.83% BLC Listed % 0.00% BOB Listed % 0.00% Byblos Listed % % 9.95% BEMO Listed % 20.77% 3.41% BLOM Listed % % 10.91% Trading RYMCO % 1.54% Industrial Holcim % 10.86% 14.89% Ciments Blancs % 26.22% MSCI LEBANON INDEX - 30 DAYS CHART LEBANESE USD SOVEREIGN CURVE The International Monetary Fund hopes that Lebanon will soon form a new government, following elections two months ago, and set about urgent structural and fiscal reforms to tame its deficit and boost growth, its Middle East head told Reuters Thursday. The IMF has also called for an immediate and substantial fiscal adjustment to improve the sustainability of public debt, which stood at more than 150 percent of gross domestic product at the end of Dubai witnessed quarterly declines of 1.1% in sales prices for villas/townhouses and apartments during the second quarter of the year, while rental declines averaged 2.5% over the period. GCC EQUITY INDICES Last Price Daily % YTD % Bahrain % 0.81% Kuwait % 3.52% Oman % % Qatar % 9.33% KSA % 15.72% Dubai % % Abu Dhabi % 6.56% LOCAL/GCC FOREIGN EXCHANGE Cross Last Price Lebanese Pound Spot USD/LBP Bahraini Dinar Spot USD/BHD Kuwaiti Dinar Spot USD/KWD Omani Rial Spot USD/OMR Qatari Riyal Spot USD/QAR Saudi Riyal Spot USD/SAR UAE Dirham Spot USD/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 % 0.83% 0.54% S&P % 4.66% 0.37% Nasdaq % 13.33% 0.99% Sectors Indices Discretionary % 13.86% -0.12% Staples % -8.35% 0.12% Energy % 5.17% 0.00% Financials % -3.06% -0.39% Healthcare % 5.54% 0.50% Industrials % -3.37% 0.86% IT % 15.35% 1.39% Materials % -3.13% -0.10% Telecom % -9.64% -4.13% Utilities % -0.38% -0.02% Real Estate % 0.21% -0.66% S&P 500 INDEX - 30 DAYS CHART S&P 500 SUPPORT & RESISTANCE US equities witnessed upward momentum from lower-than-expected monthly inflation figures, along with positive sentiment on trade talks with China. Volatility is expected to be higher today with major banks kicking off the latest earnings release season. European shares rebounded after Wednesday s slide on signs China may take a less aggressive approach after the U.S. threatened to impose tariffs on more Chinese goods. Chinese equities headed for a first weekly advance since mid-may, as the yuan held positions close to an 11-month low. The latest developments of the trade dispute seem to be priced in. INTERNATIONAL MARKETS INDICES Last Price Daily % YTD % 10D Vol World % 0.18% -0.05% Developed % 1.30% 0.21% Emerging % -7.61% -4.45% Frontier % % 0.27% Europe % -1.36% 0.02% Latin America % -9.20% -1.04% Asia Pacific % -5.43% -1.01% INTERNATIONAL EQUITY INDICES Last Price Daily % YTD % 10D Vol EuroStoxx % -1.67% -0.33% FTSE % -0.47% 0.69% CAC % 1.76% 0.11% DAX % -3.29% -0.66% Swiss SMI % -6.01% -0.59% Nikkei % -0.35% 1.35% CSI % % -1.01% 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 USD Cross Rate USD Index % -0.56% - EUR/USD % -0.43% USD/JPY % 0.01% GBP/USD % -0.49% USD/CAD % -0.41% AUD/USD % -1.41% NZD/USD % -1.11% USD/CHF % -0.07% USD/NOK % -0.24% USD/SEK % -0.14% USD/CNY % -1.13% Major EUR Cross Rate EUR/GBP % 0.09% EUR/CHF % 0.10% EUR/JPY % -0.57% DISTANCE FROM 52 WEEKS LOW/HIGH The yen headed for its worst weekly loss against the dollar since September as a rally in global equities continued to support risk-taking despite the ongoing U.S.-China trade tensions. Federal Reserve Chairman Jerome Powell gave an upbeat assessment of the U.S. economy but warned a sustained period of high tariffs on a wide variety of imports could be harmful to growth. The U.K. prime minister s push for a so-called soft Brexit, which envisions maintaining a close economic partnership with the European Union, is good for sterling, according to Deutsche Bank. EUR/USD 30 DAYS SUPPORT & RESISTANCE Source: Bloomberg, Financial Times GBP/USD 30 DAYS SUPPORT & RESISTANCE USD/JPY 30 DAYS SUPPORT & RESISTANCE USD/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 USD Emerging Market IG & HY The continued confusion over the direction of trade negotiations between the US and China and its threat on global growth expectations has driven yields lower. Bunds edge higher into close during quiet trading, paring initial losses after risk-on session during Asia hours. Italian bonds rallied following a supply spike on the front end earlier during the trading day. The continued confusion following resignations in the UK s government and an expected change in Brexit talk tactics, with May seeking easier EU talks, has created some bond volatility. OVERNIGHT RATES - SWAPS Yield Yield (in Bps) 3M USD LIBOR M EUR EURIBOR M GBP LIBOR Y USD SWAP Y USD SWAP Y USD SWAP Y USD SWAP Spread (in FIXED INCOME SPREADS r Spread Bps) USD 3M vs 10Y Spread Spread Spread (in Bps) USD 2Y 3M vs vs 10Y 10Y Spread (0.0112) USD USD IG 2Y Spread vs 10Y Spread (0.0100) (0.0120) USD IG Spread 1.57 (0.0200) USD HY Spread 4.3 (0.0800) USD HY Spread 3.57 (0.0300) EU vs US 10Y Spread (0.0391) EU vs US 10Y Spread (0.0153) EU vs US 2Y Spread (0.0601) EU vs US 2Y Spread (0.0139) EM vs Benchmark Spread (0.0140) EM vs Benchmark Spread (0.900) Source: Bloomberg, Financial Times USD 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 is poised for the biggest weekly loss in almost five months following trade disputes and new Libyan oil supply. Copper has fallen at the fastest pace relative to gold in almost three years. Copper prices have been pressured by the expected decrease in demand due to the trade issue and its impact on growth outlooks. 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 % CA INC CA INTUITIVE SURGIC ISRG IPG PHOTONICS IPGP ALIGN TECHNOLOGY ALGN AUTODESK INC ADSK TEXAS INSTRUMENT TXN ACTIVISION BLIZZ ATVI RED HAT INC RHT ILLUMINA INC ILMN TOTAL SYS SERVS TSS S&P 500 Stocks TOP 10 LOSERS Ticker Last Price Daily % BROADCOM INC AVGO L BRANDS INC LB SYNCHRONY FINANC SYF CAMPBELL SOUP CO CPB HELMERICH & PAYN HP INVESCO LTD IVZ PERRIGO CO PLC PRGO GAP INC/THE GPS UNDER ARMO-C UA CABOT OIL & GAS COG S&P 500 DISTRIBUTION S&P VOLATILITY INDEX LOSERS WINNERS LOW VOLATILITY HIGH VOLATILITY Northrop Grumman said on Thursday that its chief executive, Wes Bush, will step down at the end of 2018 after eight years in the US defense group s top job. Peugeot owner PSA s sales surged to a record high as last year s acquisition of Opel-Vauxhall from General Motors boosted results of the Paris-based group. The company, which also owns the Citroën and DS car brands, reported a 38 per cent jump in sales for the first half of the year. This drove global sales to a record 21.8m vehicles. McDonald s shares fell on Thursday evening after two states said they were investigating whether the fast-food chain s salads were linked to dozens of cases of foodborne illness. The company s shares dropped 1.33 per cent in after-hours trading to $ Walmart has approached bankers about a potential exit from Japan following a tumultuous 16 years in a notoriously difficult market. The US retailer is exploring the sale of its struggling Seiyu supermarket chain, through which it entered the $60bn Japanese market in The US government launched an appeal on Thursday of a court ruling that gave AT&T the greenlight for its $80bn takeover of entertainment company Time Warner, paving the way for a new round of litigation over the blockbuster acquisition. The move by the Department of Justice will prolong a contentious antitrust battle that began last November. Sources: Seeking Alpha, Financial Times, Reuters

7 DAILY MARKETS BRIEF I ECONOMIC DATA Banque BEMO sal KEY ECONOMIC INDICATORS Country Event Surv (M) Actual Prior Time Canada Existing Home Sales MoM 1.50% % 16:00 China Money Supply M2 YoY 8.40% % China Trade Balance $27.72b $41.61b $24.92b 6:03 China Exports YoY 9.50% 11.30% 12.60% 6:03 China Imports YoY 21.30% 14.10% 26.00% 6:03 China New Yuan Loans CNY b b China Money Supply M1 YoY 5.90% % China Money Supply M0 YoY 3.50% % China Aggregate Financing CNY b b China Exports YoY CNY 4.00% 3.10% 3.20% 6:03 China Trade Balance CNY b b b 6:03 China Imports YoY CNY 12.60% 6.00% 15.60% 6:03 Germany Wholesale Price Index MoM % 9:00 Japan Industrial Production MoM % -0.20% 7:30 Japan Industrial Production YoY % 4.20% 7:30 Japan Capacity Utilization MoM % 1.80% 7:30 Russia Source: Bloomberg Budget Balance YTD 475.0b b United States U. of Mich. Sentiment :00 United States Import Price Index MoM 0.10% % 15:30 United States Baker Hughes U.S. Rig Count :00 United States Import Price Index YoY 4.60% % 15:30 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.