Global stocks mostly lower US markets

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1 22 August, 2016 Global stocks mostly lower Investor focus is once again on Federal Reserve monetary policy US markets Stocks ebbed lower Friday and were mixed for the week. Investors continued to sell some of the safe assets such as phone and utility companies they favored earlier in the year. The Dow Jones industrials were down 0.2 percent, the S&P slipped 0.1 percent and the Nasdaq was virtually unchanged (down 1.77 points). On the week, the Dow lost 0.1 percent while the Nasdaq gained 0.1 percent and the S&P was virtually unchanged (down 0.18 point). Trading was quiet on a Friday in August. Estée Lauder skidded after the company s profit forecast for the current quarter and the new fiscal year fell far short of estimates. Emerson Electric agreed to buy Pentair s valves and controls business for $3.15 billion. Pentair acquired that business from Tyco International in 2012 as part of a larger deal between those companies and said it had $1.8 billion in revenue in Both Emerson and Pentair declined. Foot Locker advanced after it reported stronger results than expected. Nike also gained. Ross Stores was higher after it raised its profit projections after it surpassed estimates in the second quarter. Applied Materials advanced after the company, which makes chip-making equipment, disclosed new orders and a contract backlog that were much stronger than forecast. Deere was higher after it posted strong results and raised its outlook for the year. The company has been cutting costs as farmers struggle with smaller profits on corn and soybeans thanks to large harvests. Olympic Steel, AK Steel and US Steel retreated after a broker downgrade. Late Thursday, San Francisco Federal Reserve Bank President John Williams said if the Fed waited too long to increase rates, it could be costly for the economy and that a possible September rate increase should be in play. The comments added to statements from New York Fed President William Dudley earlier in the week. Investors are waiting for Friday s meeting of global central bankers in Jackson Hole, Wyoming where Fed Chair Janet Yellen may provide insight on the US rate outlook. These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was down US$3.65 to US$1, Copper futures were up 0.2 percent to US$2.18. WTI spot crude was up 30 US cents to US$ Dated Brent spot crude was down 1 US cent to US$ The US dollar was up against all of its major counterparts including the yen, euro, pound, Swiss franc and the Canadian and Australian dollars. The Dollar Index was up 0.4 percent. The yield on US Treasury 30 year bond was up 3 basis points to 2.29 percent while the yield on the 10 year note was up 4 basis points to 1.58 percent.

2 European markets European markets declined on Friday and for the week in quiet August trading. Automakers and the banks added negative pressure to the markets. An uncertain outlook for US interest rates also weighed on investor sentiment. The FTSE slipped 0.1 percent, the CAC and SMI lost 0.8 percent and the DAX was 0.6 percent lower. On the week, the FTSE declined 0.8 percent, the CAC dropped 2.2 percent, the DAX was down 1.6 percent and the SMI was 2.0 percent lower. BMW dropped after a broker downgrade. Automakers Volkswagen, Daimler, Peugeot and Renault retreated as well. Banks including Deutsche Bank, Commerzbank, Crédit Agricole, BNP Paribas and SociétéGénérale declined. In London, easyjet was higher on speculation over a possible bid for the discount airline by its founder in combination with other investors. Bookmaker 888 Holdings and The Rank Group gained after they withdrew a proposed three-way tie-up with William Hill. William Hill also was higher. Asia Pacific Markets Asian stocks ended mixed on Friday a rally in crude prices was offset by hawkish comments from New York Fed President William Dudley and San Francisco Fed President John Williams on US interest rate increases. Investors are waiting for Friday s remarks from Fed Chair Janet Yellen when she speaks at the Jackson Hole, Wyoming symposium. The Shanghai Composite edged up 0.1 percent on the day and was up 1.9 percent on the week. Shares climbed earlier in the week on hopes of additional stimulus as a slew of data underscored persisting economic weakness. The Hang Seng was down 0.4 percent and added 0.7 percent for the week. The Nikkei was up 0.4 percent but dropped 2.2 percent on the week. Oil's price gains boosted energy stocks, with Inpex, JX Holdings and Japan Petroleum advancing. Mitsui Chemicals, Fujitsu and Sumco climbed while Obayashi, Nippon Telegraph and Telephone, Shionogi and Astellas Pharma retreated. Both the S&P/ASX and All Ordinaries added 0.3 percent helped by strong gains in the mining sector. BHP Billiton, which posted its first full-year loss in 15 years earlier in the week, advanced as did and Fortescue Metals Group. On the week, the S&P/ASX slipped 0.1 percent while the All Ordinaries was virtually unchanged. Banks finished flat to slightly higher even though Moody's downgraded the outlooks of the big four banks and the banking system to negative. The Kospi was virtually unchanged (up 0.77 point) while the Sensex was 0.2 percent lower. For the week, the former was up 0.3 percent and the latter down 0.3 percent. On Saturday, India s Prime Minister Narendra Modi appointed Urjit Patel, a deputy governor at the Reserve Bank of India, to be the Bank s next governor. He will be replacing current chief Raghuram Rajan, who two months ago surprised markets by announcing he would step down when his term ends in September. Patel is credited with focusing the RBI on taming inflation. He also pushed for a Monetary Policy Committee to be set up.

3 Looking forward Central Bank activities August United States Jackson Hole Monetary Policy Symposium The following indicators will be released this week... Europe August 23 Eurozone Manufacturing, Services & Composite PMI (August flash) Germany Manufacturing, Services & Composite PMI (August flash) France Manufacturing, Services & Composite PMI (August flash) August 24 Germany Gross Domestic Product (Q final) August 25 Germany Ifo Business Survey (August) August 26 Eurozone M3 Money Supply (July) France Gross Domestic Product (Q second estimate) UK Gross Domestic Product (Q second estimate) Asia/Pacific August 24 Japan Manufacturing PMI (August flash) August 26 Japan Consumer Price Index (July) Americas August 23 United States New Home Sales (July) August 24 United States Manufacturing PMI (August flash) Existing Home Sales (July) August 25 United States Initial Unemployment Claims (week ending prior Saturday) Durable Goods Orders (July) August 26 United States Gross Domestic Product (Q second estimate) Consumer Sentiment (August final)

4 Global Stock Markets North America End Daily Percent Change Index 2015 Aug 18 Aug 19 Change Daily 2016 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 Hong Kong Hang Seng S. Korea Kospi Singapore STI China Shanghai Comp Taiwan TAIEX India Sensex Data Source Haver Analytics Bond markets 10-Yr Govt Bonds Closing Yield Change Yield (bp) US 1.58% 4 UK 0.62% 7 Germany -0.40% 4 Japan -0.09% 0 Australia 1.86% -1 Currencies and commodities Currency August 18 August 19 Change (%) Japanese yen % Australian dollar % Euro % British pound % Swiss franc % Canadian dollar %

5 Commodities August 19 Change Brent Spot $ % Gold (PM fixing) $1, $(3.65) 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. This material contains general information only. It is not an invitation to subscribe for shares in a fund nor is it to be construed as an offer to buy or sell any financial instruments. 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. Fidelity is not authorised to manage or distribute investment funds or products in, or to provide investment management or advisory services to persons resident in, the mainland China. 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