INTERNATIONAL MARKETS. Index Last Change

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1 DAILY MARKET REPORT INTERNATIONAL MARKETS Index Last Change DJIA 16, S&P 500 1, NASDAQ NIKKEI 14, HANG SENG 21, DJ EURSTOXX 50 3, FTSE 100 6, CAC 40 4, DAXX 9, US US stocks finish mixed; Nasdaq's decline longest in a month US jobless claims drop sharply, raise expectations for recovery Treasury prices drop after poor 30-year bond sale U.S. stocks mostly declined Thursday afternoon, with the S&P 500 retreating after rising to within two points of its record close and the Nasdaq Composite extending losses into a third day, as investors sorted through a mixed bag of earnings. Priceline Group gained after the online travel company reported a 36 percent increase in quarterly profit. Tesla Motors declined after the electric car maker's second-quarter outlook, delivered late Wednesday, proved disappointing to some. Investors had embraced better-than-expected April sales from retailers including Costco Wholesale and L Brands, along with upbeat data on the U.S. jobs front. Ahead of Wall Street's open, the Labor Department report initial jobless claims fell by 26,000 to to 319,000 last week, versus a 325,000 estimate. The four-week average rose to 324,750 from 320,250 the week before, the Labor Department said. The Dow Jones Industrial Average climbed as much as 104 points, lifting it above its 16, record close set April 30, and ended 0.2 percent higher. AT&T and Walt Disney led blue-chip gains that included 19 of 30 components. DirecTV is considering a potential union with AT&T after a recent takeover approach from the wireless carrier, Reuters reported, citing people familiar with the matter. After climbing to within 2 points of its record close, the S&P 500 fell 0.2 percent, with energy and utilities the worst performing and telecommunications and consumer discretionary the best of its 10 major sectors. After clearing initial losses and rallying as much as 1 percent, the Nasdaq declined 0.4 percent. For every two stocks rising, roughly three fell on the New York Stock Exchange, where nearly 474 million shares traded as of 3:30 p.m. Eastern. Composite volume surpassed 2.7 billion. The dollar advanced against the currencies of major U.S. trading partners; the 10-year Treasury yield used in determining mortgage rates and other

2 consumer loans fell 1 basis point to percent. On the New York Mercantile Exchange, gold futures fell $1.20, or 0.1 percent, to $1, an ounce; crude futures declined 51 cents, or 0.5 percent, to $ a barrel. EUROPE & UK FTSEurofirst 300 up 0.9 pct, hits highest level since June 2008 Euro rise 'cause for serious concern': Draghi Bank of England leaves rates; asset purchases unchanged European markets set to open lower amid Ukraine tensions A key European equity index surged to near six-year highs on Thursday, led by Italian and Spanish banks, after the European Central Bank opened the door to more stimulus measures in June. The pan-european FTSEurofirst 300 index hit its highest level since June 2008 on speculation the ECB may cut interest rates next month, paving the way for further steps such as an asset-purchase program. Italian banks, which own large amounts of their government's debt, rallied 3 percent on the prospect of lower borrowing costs if the ECB cuts rates or starts buying sovereign or corporate bonds. The European Central Bank on Thursday held its primary interest rate at record lows and ECB President Mario Draghi suggested in his news conference that the euro was too strong and was affecting inflation. The euro has taken a beating from comments by the European Central Bank that currency strength is a concern. The euro tumbled over 1 percent from a 2-1/2 year high on Thursday after ECB chief Mario Draghi said the strengthening euro was a "cause for serious concern." He suggested the central bank would ease monetary policy next month after holding its key rate steady at 0.25 percent in May. The Bank of England left interest rates and asset purchases unchanged on Thursday, despite building pressure for it to act to cool the housing market. At midday, the central bank announced it would keep the base rate at a record low of 0.5 percent and maintain the size of its asset purchase program at 375 billion ($636 billion). This was as expected, and followed similar inaction last month. However, concerns are rising that low interest rates are helping propel house price inflation. Nationwide's index showed prices rose 1.2 percent in April, although the Royal Institute of Chartered Surveyors has reported that prices eased somewhat in the month. European markets are expected to open lower across the board Friday, as Ukrainian pro-russian secessionists plan to continue with a referendum this weekend, despite Russian President Vladimir Putin asking them to call it off. The FTSE is expected to open 22 points lower at 6817, the Dax is called 39 points down at 9568, and the Cac is tipped to open 24 points lower at 4483.The mega-merger of advertising giants Omnicom and Publicis was called off Thursday night. French technology company Alcatel Lucent and steel giant ArcelorMittal are due to report first quarter earnings Friday morning. Key economic data includes UK trade and industrial production, due at 8.30 BST. ASIA Asia shares mixed after China inflation; Ukraine referendum weighs China April CPI rose 1.8%, below expectations Toyota sees 2.4% drop in fiscal year net profit

3 Asian stocks were mixed on Friday following a subdued Chinese inflation report and as traders kept a close eye on developments in eastern Ukraine. Chinese consumer price inflation rose an annual 1.8 percent in April, coming in below estimates for a 2 percent gain and March's 2.4 percent rise. Meanwhile, producer prices fell for the 26th straight month, dropping an annual 2 percent, worse than forecasts for a 1.8 percent decline. Japanese shares reversed early losses to rise above 14,200 points, extending gains into a second day. Still, the benchmark Nikkei is headed for a 2 percent fall for the week. Toyota Motor gained 0.6 percent following a 1.5 percent slide earlier in the session after announcing that it expects net profit to fall 2.4 percent in the year to March In other earnings news, Toshiba jumped over 1 percent after saying that it expects operating profit to climb 14 percent to a record high this business year. E-commerce firm Rakuten tumbled as much as 7 percent after operating income fell an annual 1.5 percent. Canon jumped 2.5 percent after saying it plans to buy back up to 50 billion yen of its own shares. Mainland shares resumed their declines, weighed down by weakness in property shares on fears about a downturn in the sector. Real estate developers Poly Real Estate and Vanke fell nearly 1 percent each. Agricultural Bank of China rose 0.4 percent after announcing a big preference share issue. The bank is looking to raise nearly $13 billion dollars in its Hong Kong filing, if regulators approve. In Hong Kong, shares of Standard Chartered rose 0.3 percent after more than 40 percent of shareholders opposed the bank's pay plan on Thursday following a drop in first-quarter operating profit. Australia's benchmark S&P ASX 200 index gave up the previous day's gains after the Reserve Bank of Australia reiterated its commitment to record low interest rates and said it expects GDP to grow 2.75 to 3.75 percent in The Philippines' benchmark PSE Composite Index index jumped more than 1 percent after the central bank left its benchmark rate steady on Thursday. Indian shares meanwhile added 0.6 percent on caution ahead of next week's general election results.

4 Economic Release EUR German Trade Balance 16.3B 17.4B German current Account Balance 13.9B 14.9B France Budget Balance YTD -25.7B - Italian Production MoM -0.5% 0.3% US JOLTS Job Openings Wholesale Inventories MoM Wholesale Trade Sales MoM 0.7% 1.1% UK Trade Balance Industrial Production MoM 0.9% -0.2% Industrial Production YoY 2.7% 2.4% Manufacturing Production MoM 1.0% 0.3% Manufacturing Production YoY 3.8% 2.9% CAD Unemployment Rate 6.9% Net Change in Employment 42.9K 13.5K

5 DOMESTIC MARKET Stocks Last Close Change Volume SOLIDERE A SOLIDERE B SOLIDERE GDR HOLCIM BLOM GDR BLOM BANK AUDI GDR AUDI SARADAR BYBLOS GDR BYBLOS BANK FOREIGN EXCHANGE FX Rates Spot NY Closing EUR GBP AUD JPY CHF CAD AMD RUB Commodities Spot Closing GOLD SILVER CRUDE OIL

6 Market Summary Commodities Brent steady above $108 as Russia, Libya support Brent crude held steady above $108 per barrel on Friday, supported by renewed tension in Ukraine and continued limited supply from Libya, but still on track for a second weekly loss. Brent crude for June delivery was flat at $ per barrel at 0343 GMT, after closing 9 cents lower. The contract is poised to slip 0.5 percent this week. U.S. oil was up 17 cents at $ The contract, which settled 51 cents lower on Thursday, was on course for its first weekly gain in three, boosted by a surprise drop in U.S. crude inventories last week. Leading to a further worsening of relations between Russia and the West, European Union governments have laid the groundwork for possible sanctions against Russian companies, including energy giants, over Ukraine. A Libyan government deal to reopen major oil ports controlled by rebels looks likely to unravel as the appointment of a new Islamist-backed prime minister has fuelled distrust that is eroding support for the accord. Oil investors were also watching progress in the talks over Iran's nuclear program. Iran and six world powers held more "useful" talks on Tehran's nuclear program, both sides said, although a Western diplomat said they were still struggling to overcome deep disagreements on the future of Iranian atomic capabilities. The two days of expert-level talks in New York were a prelude to next week's political-level negotiations in the Austrian capital Vienna. Gold steady on Ukraine tensions, poised for 2nd weekly drop Gold prices were steady on Friday, supported by geopolitical tensions in Ukraine, with investors eyeing fund flows and Asian physical demand for further cues. But the metal was on track to post its second straight weekly decline as more strong U.S. data showed that the world's largest economy was recovering well, supportive of the Federal Reserve's stance to keep trimming monetary stimulus. Spot gold was little changed at $1, an ounce by 0350 GMT. The metal is down 0.7 percent for the week, its second straight weekly decline. Data on Thursday showed that the number of Americans filing new claims for unemployment benefits fell more than expected last week, indicating the labor market was strengthening despite a run-up in applications in prior weeks. Gold is often seen as a safe-haven investment during times of economic and geopolitical uncertainty. Ukraine tensions have been behind much of gold's 7 percent rise this year, but traders fear the gains would dissipate quickly once the situation is resolved. Physical demand has also been muted despite the drop in prices, with many hoping that stabilization in prices would bring back buyers. FX Euro Poised for Weekly Drop as Draghi Signals June Policy Move The dollar gained against the euro on Thursday after European Central Bank President Mario Draghi said the bank might act to stem falling inflation at its June meeting, erasing the dollar's earlier fall to a 2-1/2 year low. Draghi said that the ECB's governing council is comfortable with the bank acting in June if price inflation forecasts warrant it. The yen headed for its strongest weekly advance against the dollar in a month. Australia s dollar was weaker after the nation s central bank said loose monetary policy would be appropriate for some time yet. The pound was poised for its longest stretch of weekly gains since September 2012 amid signs the U.K. s economic recovery is gaining traction. Australia s dollar is set to break

7 out of the narrowest trading range on record versus its New Zealand peer, trading patterns suggest, amid speculation monetary policy divergence between the two nations is being tempered. The Canadian dollar firmed to a four-month high against the greenback on Thursday, after data out of China eased concerns over the strength of the world's second-largest economy, while investors turned their attention to Friday's domestic unemployment report. The loonie also got some support from data that showed Canadian housing starts rebounded in April, while new home prices edged up in March. The currency got off to a strong start overnight as investors were cheered by data that showed China's exports and imports returned to growth in April. The Canadian dollar is sensitive to economic news from China, a major consumer of natural resources. China had seen a weaker-than-expected start to 2014, which prompted nervousness over the prospects for global growth. Technical FX EURUSD The pair posted a new high on Thursday but developed fresh selling from just under the psychological The sharp sell-off brings our focus on the support at , a break below this would expose USDJPY Strong support is at , a break below this would extend the decline to Resistance is at ahead of GBPUSD With bullish trend in place, there s scope for extension of the strength to resistance at and then Support is at USDCHF As long as support holds at , the risk is for resumption of strength. Resistance is at ahead of AUDUSD With the trending and momentum indicators pointing higher, there s scope for an upside move to test resistance at Support is at USDCAD The bearish development on Thursday was a close below support at This indicates an extended decline to next support at Resistance is at ahead of EURCHF As bullish conditions persist, there s still upside potential to resistance at , a break above which would be positive, opening the way to Support is at EURGBP With the MACD below its zero line reflecting a bearish trend and momentum falling, the cross is trading just shy of support at A break through this would be further negative. Resistance is at EURJPY Resistance is at , a break above this would open the way to , the level that prompted the last decline. Support is at ahead of This report is published for information purposes only. The information herein has been compiled from, or based upon sources we believe to be reliable, but we do not guarantee or accept 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. The consequences of any action taken on the basis of information contained herein are solely the responsibility of the recipient. Creditbank - Treasury and Capital Markets Tel & Fax: / 269