MARKETS

Midway Market Neutral Fund returned an estimated 3.25% in December, net of fees and expenses. This brings our unaudited 2010 net return to 53.47%. This was a particularly successful year for Midway's investors. While we are indeed pleased with this absolute return, we are even more pleased knowing that it was produced with a low relative risk profile.

Mr Kim Wong, former Managing Director of Wintech Group Limited (Wintech), has appeared in the Melbourne Magistrates' Court after his arrest on nine criminal charges following an ASIC investigation.

The Australian dollar has opened higher today, as the USD weakened on the back of a worse than expected US Labour report released overnight.

The health care sector led U.S. stocks lower Thursday, after Merck halted a clinical study, but successful bond auctions in Spain and Italy helped shore up sentiment.

The Australian Dollar declined from 0.9960 to 0.9920 against the US Dollar yesterday after the release locally of the Unemployment and Participation Rate.

US Federal Reserve Chairman Ben Bernanke anticipates that the US economy should grow in the 3-4pct range over 2011, however growth of this magnitude is ´´not going to reduce unemployment at the pace´´ he would like to see.

The local share market rose to its highest level in two weeks, posting its best win for 2011 today, on the back of a strong offshore lead and hopes the worst of the Queensland flooding has now passed.

The Australian stock market posted its strongest day in six weeks, with investor sentiment buoyed by offshore news and a lower than expected flood peak in Brisbane.

The announcement made today by Santos Ltd. on the approval of the US$16 billion Gladstone Liquefied Natural Gas Project (GLNG) in Queensland, Australia will lead to the creation of 6,000 jobs in the short to medium term as seen by politicians.

The Australian bond market slightly declined on Thursday’s opening after investors’ appetite for riskier assets grew on better global prospects.

The local share market is well supported today, thanks to a strong offshore lead and firmer commodity prices, coupled with a relief rally on hopes the worst of the Queensland flooding has passed.

A survey by Hedge Fund Compensation showed that majority of hedge fund professionals are expecting higher annual pay and bonuses as the hedge fund industry posted better-than-expected returns last year.

Managed futures gained 2.85% in December according to the Barclay CTA Index compiled by BarclayHedge. The Index was up 6.26% for the year.

The Australian dollar has rallied strongly overnight, pushing back above USD0.9900.

Investors piled into U.S. stocks after a Portuguese government debt auction eased immediate worries about the euro zone.

The Australian Dollar fell dramatically during local trade yesterday as a combination of several factors (European Sovereign Debt; QLD floods and its impact on local growth and interest rates) prompted traders to sell the Aussie in favour of safer havens.

US import prices rose by 1.1pct in December with export prices up 0.7pct.

The Australian securities regulator on Wednesday issued a class order which aims to clarify and standardise reporting of short positions in the Australian securities market.

Strength from mining stocks is managing to keep the Australian share market slightly firmer at lunchtime in the East, although worries about the economic cost of the Queensland floods is also having an impact.

The Australian dollar bounced back after lingering on the low side for a month as promising economic data pushed the market short.

The Australian Dollar fell on the release of yesterdays Trade Balance with the number coming in well below forecast at A$1,93 billion compared with a previous reading of A$2.56 billion.

The AUD has opened slightly higher this morning after a fairly uneventful offshore session overnight.

US wholesale inventories fell by 0.2pct in November - the first fall in 11 months.

U.S. stocks rose Tuesday as worries eased over the euro zone debt crisis, but the gains were pared in the afternoon as a shaky start to the earnings season made investors hesitant to leave big bets in the market ahead of an expected snowstorm in the New York metropolitan area.

Australian stocks closed slightly lower on Tuesday, with investors targeting defensive stocks due to concerns over the economic impact of the Queensland floods.

As coal mining in Queensland came to a grinding halt due to floodwaters, many buyers run to U.S. coal producers to meet their needs.

The local share market closed flat today, although companies directly affected by the Queensland floods were sold off.

Local stocks are once again trading in the red mid-session, due to concerns about the impact the Queensland floods will have on insurers and banks, and thanks to a weak lead from offshore markets and a fall in metals prices in London.

The AUD had a somewhat volatile night during the offshore session last night, especially compared to its recent tight trading ranges.