The Australian share market has closed up on Wednesday, despite ongoing global and domestic concerns about inflation, rate hikes and energy prices.
The ASX 200 opened the day slightly up and by 2:30pm was trading 0.1 per cent up.
It ended the day 0.3 per cent up at 7,234 points.
Seven of 11 sectors ended higher, with telcos the best performing. Telstra had gained 3.1 per cent.
Meanwhile, Fortescue added 3.2 per cent.
This was after official GDP figures were released for the March quarter, which showed above-expected growth of 0.8 per cent.
ANZ economist Felicity Emmett told ABC News this may increase the likelihood of the RBA hiking rates by 0.4 per cent next week.
"It really is suggesting there is this broadening and inflationary pressures, and I think this is going to concern the RBA, and that certainly leaves open the option that they will opt for a 40 basis point hike," she said.
Losers included Pilbara Mining, which dived by 22 per cent.
Energy provider Origin lost almost 14 per cent. That was after it revised down its earnings as the price of wholesale energy soared.
Coal, gas and oil prices are up, due to global volatility, including the war in Ukraine.
Locally, coal prices are also up, which is pushing up the price of generating electricity.
Origin noted that its Eraring coal-fired power plant is producing less power, which means the energy company has to buy more power on the spot market.
"The recent material under-delivery of coal to Eraring results in lower output from the plant, additional replacement coal purchases at significantly higher prices, and is being exacerbated by coal delivery constraints via rail.
"As a result, Origin now expects energy markets' underlying EBITDA in FY2022 to be $310 to $460 million, lower than the original guidance range of $450 to $600 million."
Concerns about rising energy prices were highlighted just last week, when the energy regulator raised default prices due to similar concerns raised by Origin.
Australian share market follows global sentiment
The Australian share market was having a subdued day after global markets traded down overnight.
Europe's DAX was down 1.3 per cent after inflation data showed prices had spiked 8 per cent in a year across the continent.
Like inflation here and in the United States, price hikes are being led by soaring energy costs.
The price of gas and other energy has been rising due to the war in Ukraine and other global factors. Food is also going up in price.
Higher inflation increases the likelihood that central banks will hike rates to curtail runaway prices.
"Inflation is back in focus, with European inflation at its highest-ever level, of 8.1 per cent, year on year, helping rates to extend yesterday’s sell off," NAB notes.
Overnight, Wall Street ended in the red, with the Dow and S&P down 0.6 per cent each, and the tech-heavy Nasdaq fell 0.4 per cent.
Oil prices are up (+0.6 per cent) after the European Union agreed to ban most Russian imports, due to the nation's war in Ukraine. OPEC is due to meet this week to discuss its production.
Meanwhile, European natural gas rose to its highest level in almost two months, according to ANZ.
That was after Russia cut supplies to more energy firms due to payment issues. It will only make the inflation worse across the continent.
In Australia, the focus today will be on GDP data being released.
ANZ is forecasting a rise of 0.8 per cent but says attention will be labour cost measures.
Meanwhile, fresh property data out today shows that prices declined nationally for the first time since September 2020, with a decline of 0.3 per cent overall, but some capital cities, such as Adelaide and Brisbane, still rising.
The Australian dollar is unmoved at 72 US cents.
More to come.
