Most major markets retreated last week US markets European markets

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1 27 February, 2017 Most major markets retreated last week Investors are waiting to see details on US tax cuts and other program changes US markets After declining for most of the day, US stocks managed to climb into positive territory just before Friday s close. The Dow Jones industrials and S&P inched up 0.1 percent while the Nasdaq was 0.2 percent higher. The Dow has now increased for 11 consecutive days. For the holiday shortened week, the Dow gained 1.0 percent, the S&P was up 0.7 percent and the Nasdaq edged up 0.1 percent. Profit taking contributed to the early weakness. JB Hunt Transport Services, Knight Transportation and Werner Enterprises advanced. Goldman Sachs declined on a broker downgrade. Hewlett Packard Enterprise declined after the company cut its full year profit forecast. JC Penney retreated after the department store operator reported a bigger-than-expected drop in same store sales for the holiday quarter. January new home sales were up 3.7 percent to an annualized rate of 555,000 after dropping 7.0 percent to a revised 535,000 in December. Final February University of Michigan consumer sentiment reading was upwardly revised to 96.3 from a preliminary reading of These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was up US$5.75 to US$1, Copper futures were up 1.4 percent to US$2.70. WTI spot crude was down 48 US cents to US$ Dated Brent spot crude was down 59 US cents to US$ The US dollar was up against the euro, pound, Swiss franc and the Australian dollar. The currency declined against the yen and Canadian dollar. The Dollar Index was up 0.2 percent. The yields on both the US Treasury 30 year bond and on the 10 year note were down 7 basis points to 2.95 percent and 2.31 percent respectively. European markets Most stocks were lower Friday. Both banks and miners declined thanks to a slew of disappointing earnings reports. Political worries also dented investor sentiment. The FTSE was down 0.4 percent, the CAC declined 0.9 percent, the DAX tumbled 1.2 percent and the SMI lost 0.5 percent. For the week, the FTSE lost 0.8 percent and the CAC was 0.5 percent lower. The DAX and SMI, however, were up 0.4 percent and 0.2 percent respectively. Standard Chartered declined after it said it would not pay a dividend for 2016 due to restructuring costs. RBS also was lower after it reported a 2016 loss of 7 billion due to higher misconduct charges and restructuring costs. The Italian banking index was lower. Traders said the sector was hit by a surge in Italian government bond yield spreads, which more than offset initial enthusiasm for the successful outcome of UniCredit's 13 billion cash call. After a higher open, UniCredit ended lower. French banks BNP Paribas, Société Générale and Crédit Agricole stocks that are seen as particularly sensitive to the

2 outcome of the upcoming French presidential election retreated. Miners including Rio Tinto, BHP Billiton and Antofagasta were lower. Pearson was up after gyrating during the trading session. British Airways owner IAG gained after reporting an 8.6 percent rise in annual operating profit and saying it would increase cash returns to shareholders through a stock buyback. EasyJet also advanced. Nordex tumbled after the wind turbines maker lowered its 2017 revenue forecast, citing sluggish business conditions in certain core markets. Saint-Gobain was lower after posting muted growth in full year net income on lower revenue. William Hill increased after the bookmaker said it expects a stronger performance in 2017 after posting a 10 percent decline in its annual adjusted operating profit. Asia Pacific Markets Asian stocks declined Friday. Weaker commodity prices weighed on resource stocks. Media reports suggesting that US President Donald Trump may not take action on his proposed $550 billion infrastructure promise until 2018 helped fuel demand for safe-haven assets such as gold and the yen. The Shanghai Composite inched up 0.1 percent and was1.6 percent higher on the week for its third consecutive weekly gain. The yuan was little changed after US Treasury Secretary Steven Mnuchin signaled no urgency to brand China as a currency manipulator. The Hang Seng was 0.6 percent lower and down 0.3 percent on the week. The Nikkei was down 0.5 percent and the Topix was 0.4 percent lower the yen's strength hurt exporters. For the week, the Nikkei and Topix were 0.3 percent and 0.4 percent lower respectively. Honda Motor, Sony and Toyota declined as the yen rose amid political uncertainty in Europe and on concerns that proposed US tax cuts may face delays. Toshiba climbed on a Nikkei report that the company is thinking about having its US unit Westinghouse Electric file for Chapter 11 bankruptcy protection. Both the S&P/ASX and All Ordinaries lost 0.8 percent Friday. The indices were dragged down by losses in the material sector after iron ore and copper prices retreated on worries over Chinese demand. BHP Billiton, Rio Tinto and Fortescue Metals Group declined after China's iron ore futures fell on concerns that China's 2017 steel demand will disappoint. Copper also tumbled Thursday night on worries about demand in China. Appearing before a parliamentary committee, RBA governor Philip Lowe ruled out a further cut in interest rates to boost household borrowing, saying lower rates would encourage risky lending and threaten financial stability. The S&P/ASX lost 1.2 percent and the All Ordinaries was down 1.1 percent on the week. The Kospi was 0.4 percent lower amid selling pressure from both foreign investors and domestic institutions on uncertainty surrounding Trump's policy proposals. The index added 0.7 percent on the week. Markets in India were closed for holiday. The Sensex was up 1.5 percent on the week.

3 Looking forward Central Bank activities March 1 Canada Bank of Canada Monetary Policy Announcement United States Federal Reserve Beige Book The following indicators will be released this week... Europe Feb 27 Eurozone EC Consumer and Business Confidence (February) Germany Retail Sales (January) Feb 28 Eurozone Harmonized Index of Consumer Prices (February flash) France Consumption of Manufactured Goods (January) Gross Domestic Product (Q preliminary) March 1 Eurozone Germany France UK March 2 Eurozone Unemployment Rate (January) Spain Gross Domestic Product (Q final) March 3 Eurozone Composite & Services PMI (February) Germany Composite & Services PMI (February) France Composite & Services PMI (February) UK Services PMI (February) Italy Gross Domestic Product (Q final) Asia Pacific Feb 28 Japan Industrial Production (January) Retail Sales (January) March 1 Japan Australia Gross Domestic Product (Q4.2016) China CFLP India March 2 Australia Merchandise Trade Balance (January) March 3 Japan Services PMI (February) Consumer Price Index (January) Household Spending (January) Unemployment Rate (January) Americas Feb 27 United States Durable Goods Orders (January) Pending Home Sales (January) Feb 28 Canada Industrial Product Price Index (January) United States Gross Domestic Product (Q second estimate) International Trade in Goods (January) Chicago PMI (February) S&P/Case Shiller House Price Index (December) March 1 United States Personal Income & Spending (January) ISM Manufacturing Index (February) Construction Spending (January)

4 March 2 Canada Monthly Gross Domestic Product (December) Gross Domestic Product (Q4.2016) United States Initial Unemployment Claims (week ending prior Saturday) March 3 United States ISM Nonmanufacturing Index (February) Composite & Services PMI (February) Global Stock Markets North America End Daily Percent Change Index 2016 Feb 23 Feb 24 Change Daily 2017 Yr/Yr United States Dow NASDAQ S&P Canada S&P/TSX Comp Europe UK FTSE France CAC Germany XETRA DAX Italy MIB Spain Ibex Sweden OMX Stockholm Switzerland SMI Asia/Pacific Australia All Ordinaries Japan Nikkei Topix Hong Kong Hang Seng S. Korea Kospi Singapore STI China Shanghai Comp Taiwan TAIEX India Sensex * * * * * *Market closed Data Source Haver Analytics Bond markets 10-Yr Govt Bonds Closing Yield Change Yield (bp) US 2.31% -7 UK 1.07% -8 Germany 0.18% -5 Japan 0.06% -1 Australia 2.73% -5

5 Currencies and commodities Currency Feb 23 Feb 24 Change (%) Japanese yen % Australian dollar % Yuan % Euro % British pound % Swiss franc % Canadian dollar % Commodities Feb 24 Change Brent Spot $ % Gold (PM fixing) $ 1, $5.75 Thompson-Reuters/ Jeffreys Commodity index % Important Information The content of this material is intended to be viewed for informational purposes only and cannot be construed as an offer or solicitation to purchase any investment fund or product of Fidelity, or an offer or solicitation to engage the investment management services of Fidelity. This material may not be circulated or reproduced without the written consent of Fidelity. The information contained in this material is only accurate on the date such information is published on this material. Opinions or forecasts contained herein are subject to change without prior notice. Past performance and any forecasts on the economy, stock market, bond market or the economic trends of the markets are not necessarily indicative of the future performance. Reference, if any, to specific securities is included for purpose of illustration only and should not be construed as a recommendation to buy or sell the same. Fidelity is authorised to manage or distribute private investment fund products on a private placement basis, or to provide investment management service to persons resident in the mainland China solely through its Wholly Foreign Owned Enterprise in China - FIL Investment Management (Shanghai) Company Limited. FIL Limited and its subsidiaries are commonly referred to as Fidelity or Fidelity International. Fidelity, Fidelity International, the Fidelity International logo and F symbol are trademarks of FIL Limited." CM A