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 % -9.86% Solidere B % % Banking Audi Listed % % 10.78% BLC Listed % 0.00% BOB Listed % 0.00% Byblos Listed % % 9.74% BEMO Listed % 20.77% 3.41% BLOM Listed % % 11.01% 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 Gulf region s automation industry is on track for double digit growth over the next five years, as recovering oil prices and government economic diversification plans boost demand for industrial and building automation technologies, according to new research. UAE banks continue to perform well, with higher levels of profitability. Liquidity is expected to remain healthy for the remainder of 2018, according to global professional services firm Alvarez & Marsal s Q report. Deposits grew at a slower pace than usual (1.41%), but the LTD ratio continued to remain high, with most banks operating at %. GCC EQUITY INDICES Last Price Daily % YTD % Bahrain % 0.91% Kuwait % 3.52% Oman % % Qatar % 9.59% KSA % 16.31% Dubai % % Abu Dhabi % 6.77% 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 3.66 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 % 1.21% -0.01% S&P % 4.78% -0.03% Nasdaq % 13.36% 0.06% Sectors Indices Discretionary % 14.15% -0.04% Staples % -7.77% 0.04% Energy % 5.75% -0.09% Financials % -3.51% 0.33% Healthcare % 5.78% -0.08% Industrials % -2.80% 0.08% IT % 15.33% 0.04% Materials % -3.14% 0.01% Telecom % % 0.20% Utilities % -0.32% 0.00% Real Estate % -0.07% 0.23% S&P 500 INDEX - 30 DAYS CHART S&P 500 SUPPORT & RESISTANCE U.S. stocks edged higher on Friday as gains in consumer staples offset losses in telecom services stocks. Earnings in the financials sector also created mixed signals, with some banks registering slower revenue growth than expected. European stocks posted a second consecutive weekly gain as investors turned their attention to the ongoing earnings season amid a lull in the U.S.-China trade conflict. Asian stocks fell as mixed economic data in China failed to allay concern about the world s second largest economy s ability to the withstand the impact of the trade dispute. INTERNATIONAL MARKETS INDICES Last Price Daily % YTD % 10D Vol World % 0.39% -0.74% Developed % 1.48% -0.62% Emerging % -7.15% -1.25% Frontier % % -0.93% Europe % -1.18% -1.52% Latin America % -8.87% -9.09% Asia Pacific % -4.72% -1.28% INTERNATIONAL EQUITY INDICES Last Price Daily % YTD % 10D Vol EuroStoxx % -1.41% -1.10% FTSE % -0.34% -2.20% CAC % 2.20% -1.57% DAX % -2.92% -0.71% Swiss SMI % -5.55% -2.09% Nikkei % -0.74% -2.71% CSI % % -5.71% 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 % -0.91% - EUR/USD % -0.06% USD/JPY % -0.52% GBP/USD % -0.30% USD/CAD % -0.32% AUD/USD % -0.49% NZD/USD % -0.39% USD/CHF % -0.06% USD/NOK % -0.37% USD/SEK % -3.40% USD/CNY % -0.51% Major EUR Cross Rate EUR/GBP % -0.24% EUR/CHF % 0.05% EUR/JPY % -0.44% DISTANCE FROM 52 WEEKS LOW/HIGH The yen edged toward a six-month low against the dollar as investor focus returned to the divergence between Japan s sluggish economy and the prospect of further Fed tightening. The won fell amid concern a trade war will hurt South Korea s economy, while most other Asian currencies traded in narrow ranges. New Zealand consumer prices rose at the slowest annual pace since 2016 in the first quarter, spurring the central bank to become more dovish at its June policy meeting, causing a spike in short positions. 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 Treasury offered another hint that it s planning to add a two-month bill to its list of moneymarket securities. A seasonal rise in bill supply is expected to begin this week, with supply of 3M and 6M bills expected to increase by $3B each, suggesting higher yields on the front end. 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. Long-end Australian bonds were under pricing pressures leading up to the announcement of a new May 2041 bond on Tuesday. 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 (0.0257) USD USD IG 2Y Spread vs 10Y Spread (0.0100) (0.0104) USD IG Spread USD HY Spread 4.3 (0.0800) USD HY Spread 3.56 (0.0100) EU vs US 10Y Spread (0.0391) EU vs US 10Y Spread EU vs US 2Y Spread (0.0601) EU vs US 2Y Spread EM vs Benchmark Spread (0.0140) EM vs Benchmark Spread 270 (1.100) 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 retreated below $71 a barrel as Saudi Arabia was said to offer extra crude supplies to some customers to boost output, while the U.S. considers tapping into its emergency stockpiles to rein in prices. Gold maintained its downward trend ahead of Fed Chairman Powell s speech Tuesday for clues on the monetary policy path. 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 % PACCAR INC PCAR ULTA BEAUTY INC ULTA STARBUCKS CORP SBUX AMERICAN AIRLINE AAL WALGREENS BOOTS WBA TAPESTRY INC TPR LKQ CORP LKQ PARKER HANNIFIN PH DEVON ENERGY CO DVN CUMMINS INC CMI S&P 500 Stocks TOP 10 LOSERS Ticker Last Price Daily % MATTEL INC MAT NETFLIX INC NFLX CISCO SYSTEMS CSCO BROADCOM INC AVGO FREEPORT-MCMORAN FCX GOODYEAR TIRE GT DEERE & CO DE JUNIPER NETWORKS JNPR NORDSTROM INC JWN CITIGROUP INC C S&P 500 DISTRIBUTION S&P VOLATILITY INDEX LOSERS WINNERS LOW VOLATILITY HIGH VOLATILITY China s two mobile payments giants, Alipay and Tencent, are poised to lose around $1bn in combined annual revenue to a new central bank requirement that third-party payment groups hold all customer funds in reserve. Lockheed Martin will take Britain into the commercial space age after winning government grants totaling 23.5m to launch small satellites from a remote area of the Scottish Highlands. The sparsely populated area around Tongue in Sutherland, which is at the northern tip of Scotland and roughly 56km from the Dounreay nuclear site, has been chosen for the UK s first space port to launch small satellites into polar orbit. They are expected to be used mainly for earth observation and other data-gathering tasks. Bloomberg reports that Novartis (NYSE:NVS) disagrees with a U.S. report that it issued a misleading public statement regarding the extent of its engagement of Trump attorney Michael Cohen. Citigroup witnessed a drop in share price following a mixed earnings report, as profitability was mainly driven by tax cuts. Despite growths in revenue, net income from consumer banking and institutional clients was lower. Wells Fargo was the other major bank to report worse results than expected. The group s 1% growth in net income to $12.5B resulted in an EPS of 98 cents, 4 cents off estimates. The company also reported declines in mortgage banking business, loans, and deposits. Harley-Davidson (NYSE:HOG) has been invited to open a factory in Germany, according to reports out of Europe. The company has already threatened to move some production to Europe due to the retaliatory tariffs levied on motorcycles by the European Union. 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 Int'l Securities Transactions b 15:30 China GDP YoY 6.70% 6.70% 6.80% 5:00 China Industrial Production YoY 6.50% 6.00% 6.80% 5:00 China Retail Sales YoY 8.80% 9.00% 8.50% 5:00 China Industrial Production YTD YoY 6.80% 6.70% 6.90% 5:00 China GDP YTD YoY 6.70% 6.80% 6.80% 5:00 China Fixed Assets Ex Rural YTD YoY 6.00% 6.00% 6.10% 5:00 China Retail Sales YTD YoY 9.40% 9.40% 9.50% 5:00 China GDP SA QoQ 1.60% 1.80% 1.40% 5:00 Eurozone Trade Balance SA 18.6b b 12:00 Eurozone Trade Balance NSA 17.6b b 12:00 Italy Trade Balance Total m 11:00 Russia Industrial Production YoY 3.20% % Russia Budget Balance YTD 475.0b 877.3b 458.9b United Kingdom Rightmove House Prices MoM % 0.40% 2:01 United Kingdom Rightmove House Prices YoY % 1.70% 2:01 United Source: States Bloomberg Retail Sales Advance MoM 0.50% % 15:30 United States Empire Manufacturing :30 United States Retail Sales Ex Auto MoM 0.30% % 15:30 United States Retail Sales Ex Auto and Gas 0.40% % 15:30 United States Business Inventories 0.40% % 17:00 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.