DAILY MARKETS BRIEF I LOCAL MARKETS Wednesday, January 18, 2017

BEIRUT STOCK EXCHANGE Last Daily % Development and Reconstruction Solidere A 10.12 -2.03% Solidere B 10.04 -0.79% Solidere GDR 10 -0.50% Banking Audi Listed 6.5 0.00% BLC Listed 0.99 0.00% BOB Listed 18.8 0.00% Byblos Listed 1.71 0.59% BEMO Listed 1.7 0.00% BLOM Listed 10.9 0.00% Trading RYMCO 3.25 0.00% Industrial Holcim 11.95 0.00% Ciments Blancs 1.57 0.00%  

MSCI LEBANON INDEX - 30 DAYS CHART

YTD % Dividend % -2.50% -4.38% 0.00%

0.98% 0.98% 0.98%

-4.41% 0.00% 0.00% 0.59% 0.00% 2.83%

6.15% 0.00% 3.17% 7.76% 2.33% 7.60%

0.00%

3.63%

1.70% 0.00%

7.09% 0.00%

LEBANESE USD SOVEREIGN CURVE

The 2017 draft budget – which calls for new taxes – is not likely to pass in the Cabinet unless there is a clear political consensus on this issue, a leading economist said Tuesday. Sheikh Ahmed Bin Saeed Al Maktoum, President of Dubai Civil Aviation, said the economy of Dubai grew by 2.7 per cent in real terms in 2016, despite declining oil prices, sluggish growth in developed as well as many emerging economies, and a mere 1.7 per cent growth in global trade, its lowest since 2008-2009. The Emirate is expected to grow by 3.1 per cent in 2017, he added.

GCC EQUITY INDICES Bahrain Kuwait Oman Qatar KSA Dubai Abu Dhabi

Last Price 1229.38 6301.12 5737.24 10927.83 6873.53 3672.31 4663.14

Daily % 0.74% 1.24% -0.15% 1.57% 0.73% 0.09% 0.21%

MSCI GCC INDEX - 30 DAYS CHART YTD % 0.85% 10.42% -0.73% 4.49% -4.67% 3.66% 2.50%

LOCAL/GCC FOREIGN EXCHANGE Lebanese Pound Spot Bahraini Dinar Spot Kuwaiti Dinar Spot Omani Rial Spot Qatari Riyal Spot Saudi Riyal Spot UAE Dirham Spot

Cross USD/LBP USD/BHD USD/KWD USD/OMR USD/QAR USD/SAR USD/AED

Last Price 1514.05 0.37702 0.3051 0.38502 3.641 3.7505 3.673

GCC INDICES DAILY PERFORMANCE

DAILY MARKETS BRIEF I EQUITY MARKETS Wednesday, January 18, 2017

UNITED STATES EQUITY MARKET INDICES

S&P 500 INDEX - 30 DAYS CHART

Last Price Daily % YTD % 10D Vol Major Indices DowJones 19826.77 S&P 500 2267.89 Nasdaq 5538.727 Sectors Indices Discretionary 669.892 Staples 536.31 Energy 550.39 Financials 381.72 Healthcare 815.82 Industrials 541.99 IT 831.04 Materials 318.35 Telecom 173.33 Utilities 249.17 Real Estate 191.53   

-0.30% 0.32% -0.30% 1.30% -0.63% 2.89%

-0.07% -0.80% -0.74%

0.22% 1.35% 0.63% -2.28% -0.45% -0.78% -0.36% -0.34% 0.38% 1.16% 0.84%

-3.57% 0.65% 0.87% -0.34% -0.20% -0.01% 0.41% -3.35% 1.09% 0.74% -1.55%

3.41% 0.85% -0.74% -1.25% 2.37% 0.73% 2.86% 1.98% -1.86% 0.95% 0.68%

S&P 500 SUPPORT & RESISTANCE

U.S. President-elect Donald Trump’s “too strong” dollar remark didn’t have a lasting effect on Japanese markets, with investors acting swiftly to pick up shares on dips. U.S. stocks fell as markets reopened after Monday’s holiday as financial and industrial shares declined and the U.S. dollar had its biggest single-day loss since July. European stocks closed little changed, paring earlier declines, after U.K. Prime Minister Theresa May said parliament will get a vote on the Brexit deal in which the country will seek to exit the European Union’s single market.

INTERNATIONAL MARKETS INDICES

DEVELOPED VS EMERGING - 30 DAYS CHART

Last Price Daily % YTD % 10D Vol World Developed Emerging Frontier Europe Latin America Asia Pacific

1782.86 1782.86 894.87 2525.97 122.82 2439.86 139.94

-0.30% -0.30% -0.12% -0.05% -0.98% 0.66% -0.29%

72.92% 1.81% 3.78% 4.45% 0.26% 4.24% 3.63%

-0.67% -0.60% -0.73% -1.84% 0.54% 0.86% -3.08%

INTERNATIONAL EQUITY INDICES Last Price Daily % YTD % 10D Vol EuroStoxx 50 3285.04 -1.18% FTSE 100 7220.38 -1.60% CAC 40 4859.69 -1.28% DAX 11540 -0.77% Swiss SMI 8304.1 -1.75% Nikkei 225 18894.37 0.43% CSI 300 3341 0.44%

-0.17% 1.09% -0.05% 0.51% 1.02% -1.15% 0.93%

0.63% 0.69% 0.62% 0.67% 0.19% -7.14% 0.72%

 EMERGING  DEVELOPED

INTERNATIONAL EQUITY - 30 DAYS CHART  FTSE 100  CAC 40  DAX  NIKKEI 225

DAILY MARKETS BRIEF I FOREIGN EXCHANGE Wednesday, January 18, 2017

FOREIGN EXCHANGE MARKET

DISTANCE FROM 52 WEEKS LOW/HIGH

Last Price Daily % 10D Vol 25RR Major Indices USD Index 1248.28 0.25% -0.85% EUR/USD 1.0687 -0.24% -1.35% -0.450 USD/JPY 113.28 0.59% -1.05% -1.478 GBP/USD 1.2345 -0.56% -0.21% -0.580 USD/CAD 1.307 0.21% -0.05% 0.263 AUD/USD 0.7545 -0.29% 0.48% -0.663 NZD/USD 0.7199 -0.22% 0.10% -0.553 USD/CHF 1.0041 0.26% -1.35% -0.065 USD/NOK 8.4725 0.30% -2.10% 0.465 USD/SEK 8.9094 0.28% -1.40% 0.468 USD/CNY 6.8492 0.06% -1.08% 0.045 Major EUR Cross Rate EUR/GBP 0.86572 0.33% 0.00% 0.358 EUR/CHF 1.07304 0.00% 0.01% -0.310 EUR/JPY 121.06 0.34% 0.31% -0.800 



The Australian dollar hit a two-month high against the US dollar on Wednesday after Donald Trump roiled currency markets that had been anticipating US dollar-supportive policies from the US President-elect by saying the US dollar was too strong. Sterling posted its biggest one-day gain since 2008, after a speech by U.K. Prime Minister Theresa May that outlined a hard Brexit while offering nothing fresh beyond details released over the weekend left sterling bears scrambling to cover short positions.

EUR/USD 30 DAYS SUPPORT & RESISTANCE

GBP/USD 30 DAYS SUPPORT & RESISTANCE

USD/JPY 30 DAYS SUPPORT & RESISTANCE

USD/CAD 30 DAYS SUPPORT & RESISTANCE

DAILY MARKETS BRIEF I FIXED INCOME Wednesday, January 18, 2017

GLOBAL BOND INDICES

US TREASURIES YIELD CURVE

Yield (in Bps)

Yield Benchmark Indices US 10 Years Benchmark 2.3253 EU 10 Years Benchmark 0.321 UK 10 Years Benchmark 1.309 Sovereign Bonds US Treasury Bond 1.792 Eurozone Sovereign Bond 0.567 U.K. Sovereign Bond 1.216 Japan Sovereign Bond 0.08 USD Emerging Sovereign Bond 4.742 Corporate Bonds US Investment Grade Bond 3.275 US High Yield Bond 5.93 EUR Investment Grade Bond 0.73 EUR High Yield Bond 2.743 USD Emerging Market IG & HY 5.017 

 

-0.071 -0.002 -0.055 -0.047 -0.009 -0.008 -0.005 -0.057

EUR GENERIC YIELD CURVE

-0.042 -0.022 0.005 -0.083 -0.064

The Bank of Japan’s purchases of super-long-term debt drew the strongest demand in almost five months, while foreign holdings of New Zealand’s government bonds fell to the least since 2014. Treasuries rose, curve steepened as overnight gains driven by a weaker dollar and EGB squeeze higher were maintained over U.S. session Belgium’s 10y bond yield drops ~5bps, outperforming Germany by 3bps and France by 2bps, ahead of pricing of new 10y issue after books close at EU21.5b

OVERNIGHT RATES - SWAPS 3M USD LIBOR 3M EUR EURIBOR 3M GBP LIBOR 3Y USD SWAP 5Y USD SWAP 10Y USD SWAP

Yield

Yield (in Bps)

1.02372 -0.328 0.35663 1.631 1.8724 2.2076

0.0000 0.0000 0.0000 -0.0585 -0.0776 -0.0558

2.4531 -0.0689 Spread (in FIXED INCOME SPREADS r Spread Bps) Spread (in Bps) Spread USD 3M vs 10Y Spread 1.85236 0.0277 USD 2Y 3M vs vs 10Y 10Y Spread Spread 1.79747 (0.0710) USD 1.22301 0.0021 USD 2Y vs 10Y Spread 1.17089 (0.0283) USD IG Spread 1.6 (0.0100) USD HY IG Spread 1.52 (0.0300) USD Spread 4.3 (0.0800) USD HY Spread 3.49 0.0200 EU vs US 10Y Spread -2.0893 (0.0391) EU vs US 10Y Spread -2.0581 EU vs US 2Y Spread -1.8185 (0.0601) EU vs US 2Y Spread -1.9065 EM vs Benchmark Spread 2.928 (0.0140) EM vs Benchmark Spread 284.1 -

USD CORPORATES - 30 DAYS SPREAD

30Y USD SWAP

EU VS US - 30 DAYS SPREAD

DAILY MARKETS BRIEF I COMMODITIES Wednesday, January 18, 2017

GLOBAL COMMODITIES MARKET Last Price 88.95

Daily % 0.46%

Energy WTI Crude Future Brent Crude Future NYMEX Gasoline NYMEX Heat Oil ICE Gasoil NYMEX Natural Gas

52.48 55.47 160.04 164.86 495.75 3.412

0.21% 0.04% -0.70% -0.17% 0.76% -0.20%

Precious Metals Gold Spot $/Oz Silver Spot $/Oz Platinum Spot $/Oz Palladium Spot $/Oz Gold Future Silver Future Platinum Future Palladium Future

1217.07 17.1973 976 750.28 1212.9 17.148 983.1 753

1.65% 2.22% -0.90% -0.18% 1.40% 2.28% -0.33% 0.51%

1798 5754 2717 10160 2295 21100

-0.61% -2.62% -2.65% -2.78% -0.43% -0.21%

Commodity Index

Base Metals LME Aluminum LME Copper LME Zinc LME Nickel LME Lead LME Tin

COMMODITY INDEX SUPPORT & RESISTANCE

WTI OIL 30 DAYS SUPPORT & RESISTANCE





The surprising strength of the oil market is the main reason why OPEC could end output cuts by the middle of the year, Saudi Arabia’s energy minister said. Lingering concern over Donald Trump’s policies and the U.K.’s position in the European Union extended rallies in gold.

GOLD 30 DAYS SUPPORT & RESISTANCE Agricultural Corn CBT Wheat CBT Soybeans CBT Bean Meal CBT Rough Rice CBT MDE Palm Oil Soybean CBT Coffee ICE Sugar #11 ICE Cotton #2 ICE Cocoa ICE Ethanol CME Lumber CME Orange Juice ICE Live Cattle CME Feeder Cattle CME Lean Hogs CME

365.5 433.5 1069.25 348.8 9.95 3159 35.56 149.9 20.73 72.11 2235 1.506 334.7 173.6 119 130.05 69.725

1.95% 1.76% 2.20% 4.46% 0.51% 2.47% -0.11% 0.40% 1.02% -0.22% 0.99% 2.03% 0.42% -5.21% 0.91% 0.58% 0.14%

SILVER 30 DAYS SUPPORT & RESISTANCE

DAILY MARKETS BRIEF I COMPANY NEWS Wednesday, January 18, 2017

TOP 10 WINNERS Ticker

TOP 10 LOSERS

Last Price Daily %

Ticker S&P 500 Stocks

S&P 500 Stocks NOBLE ENERGY INC PVH CORP NRG ENERGY MATTEL INC RALPH LAUREN COR

NBL PVH NRG MAT RL

40.05 94.83 15.34 30.91 89.58

7.11 6.18 5.07 4.71 3.78

QUALCOMM INC PNC FINANCIAL SE BANK OF AMERICA FIFTH THIRD BANC

HANESBRANDS INC

HBI

22.86

3.63

DLTR

79.51

REYNOLDS AMERICA

RAI

CONSTELLATION-A MICHAEL KORS HOL

DOLLAR TREE INC

QCOM PNC BAC FITB

64.19 113.93 22.05 26.03

-4.02 -4.09 -4.17 -4.62

KEY

17.71

-4.68

ZIONS BANCORP

ZION

41.77

-4.74

3.09

CITIZENS FINANCI

CFG

34.12

-5.98

57.68

3.06

REGIONS FINANCIA

RF

13.78

-6.13

STZ

153.73

2.98

NAVIENT CORP

NAVI

15.77

-6.41

KORS

43.56

2.76

COMERICA INC

CMA

65.37

-6.51

S&P 500 DISTRIBUTION

WINNERS

  

 

   

Last Price Daily %

LOSERS

KEYCORP

S&P VOLATILITY INDEX

LOW VOLATILITY

HIGH VOLATILITY

An air bag made by Takata has ruptured in a Honda vehicle in Japan, resulting in a minor injury to the car's driver. Deutsche Bank may withhold bonuses from as many as 90% of its bankers and traders, according to the NY Post. Boeing CEO Dennis Muilenburg says he had a "very productive" meeting with Pres.-elect Trump and is encouraged by progress in talks on the Air Force One replacement fleet and on fighter jets. General Motors confirms that it's investing an additional $1B in U.S. plants. The automaker invested $2.9B in U.S. plants last year. Diageo is considering increasing its stake in United Spirits, according to a report from Bloomberg. The company already holds a majority position of 55% in the Indian drinks maker valued at close to $4.5B. Tiffany saw comparable sales fall 11% in Europe on weaker than expected demand. A strong U.S. dollar lopped off seven percentage points of sales from the continent. More sources are stirring up talk about a big Verizon move into cable, with a big purchase reportedly on CEO Lowell McAdam's mind. Volkswagen plans to introduce its first electric car in Japan this summer, according to Nikkei. Deutsche Bank late last year agreed in principal with the DOJ over a $7.2B settlement for crisisera RMBS, and that becomes official today, according to Justice.

DAILY MARKETS BRIEF I ECONOMIC DATA Wednesday, January 18, 2017

KEY ECONOMIC INDICATORS Country Canada Eurozone United States United Kingdom United States United States United Arab Emirates Germany Germany Kuwait Eurozone Bahrain United Kingdom United Arab Emirates United States Germany United States Germany Kuwait United States

Event Bank of Canada Rate Decision CPI YoY CPI MoM Jobless Claims Change MBA Mortgage Applications Industrial Production MoM M1 Money Supply MoM CPI YoY CPI MoM M1 Money Supply YoY CPI MoM M1 Money Supply YoY Claimant Count Rate M3 Money Supply MoM CPI Ex Food and Energy MoM CPI EU Harmonized YoY Net Long-term TIC Flows CPI EU Harmonized MoM M2 Money Supply YoY Fed's Yellen Speaks in San Francisco

Surv(M) 0.50% 1.10% 0.30% 5.0k -0.60% -1.70% 0.70% -0.50% -2.30% -0.20% 1.70% -1.00% --

Actual -------1.70% 0.70% ------1.70% -1.00% --

Prior 0.50% 1.10% 0.20% 2.4k 5.80% -0.40% 0.00% 1.70% 0.70% 4.52% -0.10% 3.66% 2.30% 1.70% 0.20% 1.70% $9.4b 1.00% 5.03%

Time 17:00 12:00 15:30 11:30 14:00 16:15 9:00 9:00 12:00 11:30 15:30 9:00 23:00 9:00 22:00

Banque BEMO sal Investment & Research [email protected] 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

General Management Beirut Central District Riad El Solh Square, Esseily Building Bloc A, 7th Floor Beirut - Lebanon Tel: + 961 1 992 600 Fax: + 961 1 983 368 www.bemobank.com

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