DAILY MARKETS BRIEF I LOCAL MARKETS BEIRUT STOCK EXCHANGE Last Daily % YTD % Dividend % MSCI Lebanon 586.76 0.14% -10.31% Development and Reconstruction Solidere A 7.24 0.42% -9.61% Solidere B 7.36 0.14% -7.77% Banking Audi Listed 5.06 0.00% -12.00% 10.83% BLC Listed 0.93 0.00% 0.00% BOB Listed 18.8 0.00% 0.00% Byblos Listed 1.41 0.00% -11.88% 9.95% BEMO Listed 1.57 0.00% 20.77% 3.41% BLOM Listed 10.3 0.00% -11.51% 10.91% Trading RYMCO 3.3 0.00% 1.54% Industrial Holcim 16.03 0.00% 10.86% 14.89% Ciments Blancs 2.84 0.00% 26.22% MSCI LEBANON INDEX - 30 DAYS CHART LEBANESE USD SOVEREIGN CURVE The International Monetary Fund hopes that Lebanon will soon form a new government, following elections two months ago, and set about urgent structural and fiscal reforms to tame its deficit and boost growth, its Middle East head told Reuters Thursday. The IMF has also called for an immediate and substantial fiscal adjustment to improve the sustainability of public debt, which stood at more than 150 percent of gross domestic product at the end of 2017. Dubai witnessed quarterly declines of 1.1% in sales prices for villas/townhouses and apartments during the second quarter of the year, while rental declines averaged 2.5% over the period. GCC EQUITY INDICES Last Price Daily % YTD % Bahrain 1342.51-0.18% 0.81% Kuwait 6633.44 0.00% 3.52% Oman 4455.54-0.95% -12.91% Qatar 9355.02-0.43% 9.33% KSA 8388.66-0.35% 15.72% Dubai 2892.43-0.11% -14.42% Abu Dhabi 4691.8 0.50% 6.56% LOCAL/GCC FOREIGN EXCHANGE Cross Last Price Lebanese Pound Spot USD/LBP 1513.5 Bahraini Dinar Spot USD/BHD 0.37925 Kuwaiti Dinar Spot USD/KWD 0.30282 Omani Rial Spot USD/OMR 0.38495 Qatari Riyal Spot USD/QAR 3.6612 Saudi Riyal Spot USD/SAR 3.7503 UAE Dirham Spot USD/AED 3.673 Source: Daily Star, Gulf Base MSCI GCC INDEX - 30 DAYS CHART GCC INDICES DAILY PERFORMANCE
DAILY MARKETS BRIEF I EQUITY MARKETS UNITED STATES EQUITY MARKET INDICES Last Price Daily % YTD % 10D Vol Major Indices DowJones 24924.89 0.91% 0.83% 0.54% S&P 500 2798.29 0.87% 4.66% 0.37% Nasdaq 7823.916 1.39% 13.33% 0.99% Sectors Indices Discretionary 894.21 0.67% 13.86% -0.12% Staples 538.35-0.11% -8.35% 0.12% Energy 560.96 0.20% 5.17% 0.00% Financials 449.73 0.19% -3.06% -0.39% Healthcare 1009.29 1.10% 5.54% 0.50% Industrials 616.29 1.12% -3.37% 0.86% IT 1276 1.79% 15.35% 1.39% Materials 367.07 0.22% -3.13% -0.10% Telecom 150.07 0.52% -9.64% -4.13% Utilities 266.35 0.09% -0.38% -0.02% Real Estate 204.28 0.20% 0.21% -0.66% S&P 500 INDEX - 30 DAYS CHART S&P 500 SUPPORT & RESISTANCE US equities witnessed upward momentum from lower-than-expected monthly inflation figures, along with positive sentiment on trade talks with China. Volatility is expected to be higher today with major banks kicking off the latest earnings release season. European shares rebounded after Wednesday s slide on signs China may take a less aggressive approach after the U.S. threatened to impose tariffs on more Chinese goods. Chinese equities headed for a first weekly advance since mid-may, as the yuan held positions close to an 11-month low. The latest developments of the trade dispute seem to be priced in. INTERNATIONAL MARKETS INDICES Last Price Daily % YTD % 10D Vol World 1256.35 0.62% 0.18% -0.05% Developed 2130.86 0.64% 1.30% 0.21% Emerging 1070.24 0.52% -7.61% -4.45% Frontier 2679.71-0.30% -10.33% 0.27% Europe 129.62 0.77% -1.36% 0.02% Latin America 2568 0.81% -9.20% -1.04% Asia Pacific 164.37 0.19% -5.43% -1.01% INTERNATIONAL EQUITY INDICES Last Price Daily % YTD % 10D Vol EuroStoxx 50 3445.49 0.68% -1.67% -0.33% FTSE 100 7651.33 0.78% -0.47% 0.69% CAC 40 5405.9 0.97% 1.76% 0.11% DAX 12492.97 0.61% -3.29% -0.66% Swiss SMI 8818.19 1.56% -6.01% -0.59% Nikkei 225 22684.32 2.24% -0.35% 1.35% CSI 300 3498.21 0.49% -13.21% -1.01% DEVELOPED VS EMERGING - 30 DAYS CHART EMERGING DEVELOPED INTERNATIONAL EQUITY - 30 DAYS CHART FTSE 100 CAC 40 DAX NIKKEI 225 Source: Bloomberg, Financial Times
DAILY MARKETS BRIEF I FOREIGN EXCHANGE FOREIGN EXCHANGE MARKET Last Price Daily % 10D Vol 25RR Major USD Cross Rate USD Index 1181.43 0.10% -0.56% - EUR/USD 1.1657-0.13% -0.43% -0.493 USD/JPY 112.67 0.11% 0.01% -0.265 GBP/USD 1.317-0.27% -0.49% -0.608 USD/CAD 1.3167 0.10% -0.41% 0.390 AUD/USD 0.7415 0.09% -1.41% -0.603 NZD/USD 0.677-0.18% -1.11% -0.568 USD/CHF 1.0024 0.00% -0.07% -0.215 USD/NOK 8.1171 0.06% -0.24% 0.555 USD/SEK 8.8792 0.06% -0.14% 0.205 USD/CNY 6.6732 0.08% -1.13% 0.235 Major EUR Cross Rate EUR/GBP 0.88512 0.16% 0.09% 0.298 EUR/CHF 1.16845-0.11% 0.10% -0.365 EUR/JPY 131.35 0.01% -0.57% -0.568 DISTANCE FROM 52 WEEKS LOW/HIGH The yen headed for its worst weekly loss against the dollar since September as a rally in global equities continued to support risk-taking despite the ongoing U.S.-China trade tensions. Federal Reserve Chairman Jerome Powell gave an upbeat assessment of the U.S. economy but warned a sustained period of high tariffs on a wide variety of imports could be harmful to growth. The U.K. prime minister s push for a so-called soft Brexit, which envisions maintaining a close economic partnership with the European Union, is good for sterling, according to Deutsche Bank. 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
DAILY MARKETS BRIEF I FIXED INCOME GLOBAL BOND INDICES Yield Yield (in Bps) Benchmark Indices US 10 Years Benchmark 2.8454-0.004 EU 10 Years Benchmark 0.357-0.010 UK 10 Years Benchmark 1.282-0.012 Sovereign Bonds US Treasury Bond 2.734 0.011 Eurozone Sovereign Bond 0.529-0.023 Japan Sovereign Bond -0.093 0 US TREASURIES YIELD CURVE EUR GENERIC YIELD CURVE Corporate Bonds US Corporate TR 3.990 0.009 US High Yield Bond TR 6.415-0.035 EUR Aggregate Corporate TR 0.969-0.016 EUR High Yield TR 4.032-0.020 USD Emerging Market IG & HY 5.677-0.021 The continued confusion over the direction of trade negotiations between the US and China and its threat on global growth expectations has driven yields lower. Bunds edge higher into close during quiet trading, paring initial losses after risk-on session during Asia hours. Italian bonds rallied following a supply spike on the front end earlier during the trading day. 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. OVERNIGHT RATES - SWAPS Yield Yield (in Bps) 3M USD LIBOR 2.337 0.0000 3M EUR EURIBOR -0.321 0.0000 3M GBP LIBOR 0.72263 0.0000 3Y USD SWAP 2.8726-0.0008 5Y USD SWAP 2.8888-0.0052 10Y USD SWAP 2.9173-0.0064 30Y USD SWAP 2.9166-0.0037 Spread (in FIXED INCOME SPREADS r Spread Bps) USD 3M vs 10Y Spread 1.85236 Spread Spread 0.0277 (in Bps) USD 2Y 3M vs vs 10Y 10Y Spread 1.22301 0.87658 (0.0112) 0.0021 USD USD IG 2Y Spread vs 10Y Spread 0.25542 1.6 (0.0100) (0.0120) USD IG Spread 1.57 (0.0200) USD HY Spread 4.3 (0.0800) USD HY Spread 3.57 (0.0300) EU vs US 10Y Spread -2.0893 (0.0391) EU vs US 10Y Spread -2.4961 (0.0153) EU vs US 2Y Spread -1.8185 (0.0601) EU vs US 2Y Spread -3.2216 (0.0139) EM vs Benchmark Spread 2.928 (0.0140) EM vs Benchmark Spread 271.1 (0.900) Source: Bloomberg, Financial Times USD CORPORATES - 30 DAYS SPREAD EU VS US - 30 DAYS SPREAD
DAILY MARKETS BRIEF I COMMODITIES GLOBAL COMMODITIES MARKET Last Price Daily % Commodity Index 84.01 0.68% Energy WTI Crude Future 70.33-0.07% Brent Crude Future 74.45 1.43% NYMEX Gasoline 207.17 0.50% NYMEX Heat Oil 212.31 1.06% ICE Gasoil 641-3.57% NYMEX Natural Gas 2.797-1.13% COMMODITY INDEX SUPPORT & RESISTANCE WTI OIL 30 DAYS SUPPORT & RESISTANCE Precious Metals Gold Spot $/Oz 1247.39 0.44% Silver Spot $/Oz 15.9485 0.92% Platinum Spot $/Oz 841.95 1.69% Palladium Spot $/Oz 951.59 1.28% Gold Future 1246.6 0.18% Silver Future 15.977 1.01% Platinum Future 846.4 1.37% Palladium Future 948.8 1.26% Base Metals LME Aluminum 2042-0.87% LME Copper 6228 1.35% LME Zinc 2581 0.70% LME Nickel 14195 2.27% LME Lead 2215 0.68% LME Tin 19650 1.42% Agricultural Corn CBT 359.25 1.70% Wheat CBT 484.5 2.70% Soybeans CBT 849.25 0.12% Bean Meal CBT 327.7 0.00% Rough Rice CBT 11.92 0.25% MDE Palm Oil 2186-0.82% Soybean CBT 28.69-0.45% Coffee ICE 111.55-0.45% Sugar #11 ICE 11.08-1.86% Cotton #2 ICE 88.54 4.73% Cocoa ICE 2485 0.20% Ethanol CME 1.411 0.93% Lumber CME 520.1-0.33% Orange Juice ICE 167.6 0.39% Live Cattle CME 107.6 1.27% Feeder Cattle CME 151.025 1.09% Lean Hogs CME 53.95 3.70% Oil is poised for the biggest weekly loss in almost five months following trade disputes and new Libyan oil supply. Copper has fallen at the fastest pace relative to gold in almost three years. Copper prices have been pressured by the expected decrease in demand due to the trade issue and its impact on growth outlooks. Source: Bloomberg GOLD 30 DAYS SUPPORT & RESISTANCE SILVER 30 DAYS SUPPORT & RESISTANCE
DAILY MARKETS BRIEF I COMPANY NEWS S&P 500 Stocks TOP 10 WINNERS Ticker Last Price Daily % CA INC CA 44.15 18.65 INTUITIVE SURGIC ISRG 525 4.12 IPG PHOTONICS IPGP 231.2 4.01 ALIGN TECHNOLOGY ALGN 362.82 4.00 AUTODESK INC ADSK 137.46 3.96 TEXAS INSTRUMENT TXN 115.84 3.65 ACTIVISION BLIZZ ATVI 81.37 3.51 RED HAT INC RHT 150 3.45 ILLUMINA INC ILMN 304.69 3.44 TOTAL SYS SERVS TSS 91.18 3.39 S&P 500 Stocks TOP 10 LOSERS Ticker Last Price Daily % BROADCOM INC AVGO 209.98-13.74 L BRANDS INC LB 32.34-12.05 SYNCHRONY FINANC SYF 32.96-5.29 CAMPBELL SOUP CO CPB 41.37-1.62 HELMERICH & PAYN HP 64.13-2.33 INVESCO LTD IVZ 26.04-2.25 PERRIGO CO PLC PRGO 76.02-2.19 GAP INC/THE GPS 29.59-2.02 UNDER ARMO-C UA 20.5-1.63 CABOT OIL & GAS COG 23.27-1.61 S&P 500 DISTRIBUTION S&P VOLATILITY INDEX LOSERS WINNERS LOW VOLATILITY HIGH VOLATILITY Northrop Grumman said on Thursday that its chief executive, Wes Bush, will step down at the end of 2018 after eight years in the US defense group s top job. Peugeot owner PSA s sales surged to a record high as last year s acquisition of Opel-Vauxhall from General Motors boosted results of the Paris-based group. The company, which also owns the Citroën and DS car brands, reported a 38 per cent jump in sales for the first half of the year. This drove global sales to a record 21.8m vehicles. McDonald s shares fell on Thursday evening after two states said they were investigating whether the fast-food chain s salads were linked to dozens of cases of foodborne illness. The company s shares dropped 1.33 per cent in after-hours trading to $157.00. Walmart has approached bankers about a potential exit from Japan following a tumultuous 16 years in a notoriously difficult market. The US retailer is exploring the sale of its struggling Seiyu supermarket chain, through which it entered the $60bn Japanese market in 2002. The US government launched an appeal on Thursday of a court ruling that gave AT&T the greenlight for its $80bn takeover of entertainment company Time Warner, paving the way for a new round of litigation over the blockbuster acquisition. The move by the Department of Justice will prolong a contentious antitrust battle that began last November. Sources: Seeking Alpha, Financial Times, Reuters
DAILY MARKETS BRIEF I ECONOMIC DATA Banque BEMO sal KEY ECONOMIC INDICATORS Country Event Surv (M) Actual Prior Time Canada Existing Home Sales MoM 1.50% -- -0.10% 16:00 China Money Supply M2 YoY 8.40% -- 8.30% China Trade Balance $27.72b $41.61b $24.92b 6:03 China Exports YoY 9.50% 11.30% 12.60% 6:03 China Imports YoY 21.30% 14.10% 26.00% 6:03 China New Yuan Loans CNY 1535.0b -- 1150.0b China Money Supply M1 YoY 5.90% -- 6.00% China Money Supply M0 YoY 3.50% -- 3.60% China Aggregate Financing CNY 1400.0b -- 760.8b China Exports YoY CNY 4.00% 3.10% 3.20% 6:03 China Trade Balance CNY 187.00b 261.88b 156.51b 6:03 China Imports YoY CNY 12.60% 6.00% 15.60% 6:03 Germany Wholesale Price Index MoM -- -- 0.80% 9:00 Japan Industrial Production MoM -- -0.20% -0.20% 7:30 Japan Industrial Production YoY -- 4.20% 4.20% 7:30 Japan Capacity Utilization MoM -- -2.10% 1.80% 7:30 Russia Source: Bloomberg Budget Balance YTD 475.0b -- 458.9b United States U. of Mich. Sentiment 98 -- 98.2 17:00 United States Import Price Index MoM 0.10% -- 0.60% 15:30 United States Baker Hughes U.S. Rig Count -- -- 1052 20:00 United States Import Price Index YoY 4.60% -- 4.30% 15:30 Head Office - Private and Corporate Banking 96 Pasteur Building, Pasteur Street, Medawar Area, P.O. Box: 16-6353, Beirut - Lebanon Tel: + 961 1 568 250 Fax: + 961 1 568 266 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.