EQUITY INDICES Close % chg Week % chg YTD EQUITY INDICES Close % chg Week % chg YTD

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1 Week ending: January 25, 2013 MAJOR NEWS: Markets were up owing to encouraging economic data and better-than-expected earnings reports. Looking ahead: Initial estimates of the U.S. GDP data to be released. Global Markets EQUITY INDICES Close % chg Week % chg YTD EQUITY INDICES Close % chg Week % chg YTD CAN: S&P/TSX % 3.1% Sw itzerland: SMI % 9.3% US: INDU % 6.0% Japan: NKY % 5.1% US: SPX % 5.4% Hong Kong: HSI % 4.1% Nasdaq: CCMP % 4.3% Thailand: SET % 5.0% Brazil: IBOV % 0.4% Malaysia: KLCI % -3.1% Mexico: MEXBOL % 4.3% Singapore: STI % 3.2% UK: FTSE % 6.6% Taiw an: TWSE % -0.3% Euro Stoxx 50: SX5E % 4.1% Korea: KOSPI % -2.5% Germany: DAX % 3.2% Manila: PCOMP % 6.1% France: CAC % 3.8% Australia: AS % 4.2% Netherlands: AEX % 3.4% China: Shanghai % 1.0% Italy: FTSE MIB % 8.9% India: Sensex % 3.5% COMMODITIES Close % chg Week % chg YTD CURRENCIES Close % chg Week % chg YTD Gold US$/oz % -1.0% U.S./CAD % -1.3% Oil US$/bbl % 3.9% CAD/Euro % 3.5% U.S./BP % -2.8% BOND YIELDS Close chg Week chg YTD JY/U.S % 4.8% 10 yr Canada Govt. 1.94% Euro/BP % -4.9% 10 yr U.S. Treas 1.95% U.S./Euro % 2.2% 10 yr Germany Govt. 1.57% JY/BP % 2.3% 10 yr Japan Govt. 0.72% yr Canada Govt. 2.53% yr U.S. Treas 3.13% Source: Datastream. Index returns are in local currency. All returns are price returns and do not include dividends. PAGE 1

2 CANADA 2.0% S&P/TSX Comp. Index 0.54% 0.24% 0.23% -0.24% -0.05% -2.0% The S&P/TSX Composite Index rose by 0.7%, owing to positive economic data from the U.S. and China and stronger business sentiment in Germany. Nine of the ten GICS sectors gained for the week, led by the health care sector, followed by information technology. Valeant Pharmaceuticals International led the health care sector higher. The stock has been gaining since the company announced that it expects to report strong growth in revenue and earnings in Kinross Gold Corp pulled the materials sector lower, after gold prices declined. Consumer prices in Canada fell in December on a seasonally adjusted basis by 0.1% month-on-month, compared with a decline of 0.2% in November, after costs of food and shelter moderated. The Bank of Canada kept its benchmark interest rate unchanged, at 1.0%, and stated that the likelihood of an increase in the benchmark rate has decreased, with inflationary pressures remaining very weak. The Teranet-National Bank Home Price Composite 11 Index fell in December by 0.4% month-on-month, following a similar decline in November, led by Toronto and Montreal. Retail sales in Canada rose in November by 0.2% month-on-month, to $39.4 billion, owing to a jump in purchase of automobiles. PAGE 2

3 U.S. Dow Jones Index 0.00% 0.46% 0.49% 0.33% 0.51% - U.S. equities gained for the week on positive economic data and earnings announcements. The Dow Jones Index gained 1.8%, while the Nasdaq rose 0.5%. The S&P 500 Index rose 1.1% for the week. The Conference Board s index of leading indicators rose in December by 0.5% month-on-month, after remaining unchanged in November, signalling stronger growth in the coming months. New home sales in the U.S. declined in December by 7.3% month-on-month, to an annual pace of 369,000 units, compared with a gain of 9.3% in November. Existing home sales declined by 1.0% month-on-month, compared with a revised gain of 4.8% in November. The FHFA U.S. House Price Index rose in November by 0.6% month-on-month, following a similar gain in October, owing to relatively higher demand. Initial jobless claims declined for the week ended January 19 by 5,000, to 330,000, indicating that job growth may be accelerating. The Markit Economics preliminary index of U.S. manufacturing rose in January to 56.1, from 54.0 in December 2012, indicating that U.S. manufacturing might expand at a faster rate, driven by new orders. PAGE 3

4 CONTINENTAL EUROPE DJ Euro Stoxx % 0.54% 0.78% -0.36% -0.31% - European markets ended the week in positive territory, after upbeat German business data and encouraging comments from European Central Bank President Mario Draghi boosted sentiment. At the World Economic Forum in Davos, Draghi stated that economic activity was stabilizing, while also foreseeing a recovery in the second half of the year. The DJ Euro Stoxx 50 Index, Germany s DAX Index and France s CAC Index rose by 1.3%, 2.0% and 1.0%, respectively. A composite index of the eurozone s manufacturing and services rose in January to 48.2, from 47.2 in December, adding to signs that the 17-country eurozone economy is beginning to emerge from a recession. An index of consumer confidence in the eurozone rose in January to -23.9, from in December, indicating that households are less pessimistic about their prospects, despite high unemployment and government austerity. Economic expectations for the eurozone, as surveyed by ZEW, rose in January by 22.9%, after moving up by 18.2% in December, led by better-than-expected manufacturing and services data in the region. An index of Germany s services confidence went up in January to 15.4, from 14.1 in December. According to IFO data, most of the sectors of the economy expanded, with industry, services and construction gaining the most. Retail sales in Italy fell in November by 3.1% year-on-year, after declining by 3.8% in October, led by a drop in non-food category sales. PAGE 4

5 U.K. 2.0% 0.43% FTSE 100 Index 0.30% 1.09% 0.31% -0.03% -2.0% The U.K. s stock market, as measured by the FTSE Index, gained 2.1% for the week. The continued rally in the stock markets is believed to be the result of continued quantitative easing, with central banks buying up government bonds. The U.K. s budget deficit widened in December to 15.4 billion pounds sterling, from 14.8 billion pounds sterling in December 2011, after government spending jumped and a struggling economic recovery weighed on company profits. Unemployment claims in the U.K. declined by 12,100 in December, to 1.56 million. However, the unemployment rate remained unchanged, at 4.8%, indicating that the country s economic recovery remains fragile. The U.K. s GDP shrank in the fourth quarter by 0.3%, compared with a growth of 0.9% in the previous quarter, due to a drop of 1.8% in industrial output. An index of the U.K. services industry grew for the three months ending November by 0.6%, compared with an increase of 1.1% for the three months ending October, primarily led by a rise in air transport, publishing and audiovisual and information services industries. U.K. house prices, as per Hometrack Housing Survey, remained unchanged month-on-month in January, after declining by 0.1% in December. Fears about Europe, a weak economic outlook, the impact of austerity, lower income growth and less mortgage availability have weighed heavily on demand. PAGE 5

6 JAPAN Nikkei % 2.88% % -1.52% -2.08% Japanese stocks, as measured by the Nikkei, gained 0.1%. Equities in Japan, particularly stocks of exporters, were volatile due to fluctuation in the yen. However, the Bank of Japan s monetary easing policy buoyed investor sentiment. Japan s All Industry Index rose in November by 0.1%, after gaining 0.1% in October, primarily due to declines in industrial production and tertiary industry activity. Japanese supermarket sales fell in December by 1.5% year-on-year, following a decline of 2.2% in November. The decline was broad-based across all categories, with clothing declining the most. Japan s merchandise trade deficit shrank in December to billion yen, from a deficit of billion yen in November. Exports rose by 2.4% month-on-month, while imports gained 1.2%. The Japanese core consumer price index declined in December by 0.2% year-on-year, primarily due to lower prices for household goods and entertainment. In November, the index fell by 0.1% year-on-year. Japan s corporate services price index rose in December to 95.8, from 95.6 in November, largely driven by an increase in transportation costs. The Bank of Japan left its key interest rate range at zero to 0.1% and the asset purchase ceiling at 101 trillion yen. It also adopted a 2.0% inflation target, under pressure from the new Japanese government. From 2014, the Bank of Japan will switch to an open-ended commitment to buy assets. PAGE 6

7 SOUTHEAST ASIA Hang Seng -0.05% 0.29% -0.10% -0.15% -0.08% - Asian markets performance was mixed for the week. China s Shanghai composite fell 1.1%, with investors taking profits after the index hit an eight-month high. Hong Kong s Hang Seng fell by 0.1%, in line with the Chinese markets. India s Sensex was up by 0.3%, after easing inflation strengthened hopes for an interest rate cut by the Reserve Bank of India. Chinese business confidence for future conditions, as measured by the MNI China Business Sentiment Survey, rose in January to 61.1, from 59.2 in December, due to improving expectations for new orders. China s industrial profits for the year 2012 rose by 5.3% year-on-year. The gain was largely driven by the electricity and agriculture food industries, which rose 69.1% and 20.6% year-on-year, respectively. According to a preliminary release, the HSBC China manufacturing PMI rose in January to a two-year high of 51.9, from 51.5 in December. China s leading index, released by the Conference Board, rose in December to 251.1, from in November. Hong Kong s exports rose in December by 14.4% year-on-year, following a gain of 10.5% in November, with exports to China and the U.S. gaining the most. South Korea s GDP grew in the forth quarter of 2012 at an annualized rate of 1.5%, compared with growth of 0.2% in the third quarter; growth in private consumption helped offset weak exports. South Korea s consumer confidence index rose in January to an eight-month high of 102, from 99 in December, after incoming President Park Geun Hye pledged to boost economic growth and increase welfare spending. South Korea s department store sales fell in December by 0.2% year-on-year, following a gain of 9.1% in November, primarily driven by a decline in clothing sales. PAGE 7

8 LATIN AMERICA Brazil IBOV -0.09% -0.34% 0.44% 0.00% -1.29% - Latin American stocks were mixed for the week. Mexico s MEXBOL rose by 0.8%, helped by encouraging economic data, particularly unemployment and retail sales data. In contrast, Brazil s Ibovespa fell by 1.3%, due to weak economic data releases. The unemployment rate in Mexico fell in December to 4.5%, from 5.1% in November, mainly due to job gains in manufacturing and services industries. Retail sales in Mexico rose in November by 3.5% year-on-year, following a similar gain in October, helped by a robust long weekend of sales backed by year-end bonuses. Mexico s consumer prices rose in the first two weeks of January by 0.15%, driven by higher costs of health and personal services and transportation. Mexico reported a trade surplus of US$962 million in December, compared with a trade deficit of US$1.2 billion, after a decline in imports outpaced exports. Brazil s trade deficit widened in the week ended January 20 to US$1.7 billion, from a deficit of US$878 million in the previous week, due to a decline in the export of raw materials, primarily oil, iron ore and grains and meats. Brazil s consumer confidence index declined in January to 117.9, from in December, amid moderating economic activity and rising inflation. Brazil s consumer prices, as measured by the IPCA-15 Index, rose in January by 0.9%, following a gain of 0.7% in December, largely driven by higher costs for food and personal expenses. Unless otherwise stated, the source of all data is Datastream. All views expressed are those of Fidelity Investments. This document is not to be reproduced or circulated without prior permission. Issued by Fidelity Investments Canada ULC. PAGE 8