Shares bounce on cool inflation data but risks remain
The S&P/ASX200 has bounced on a softer than expected April inflation figure. -AAP Image
Australia's share market has ended the session higher after cooler than expected inflation data took the pressure of the Reserve Bank to hike the interest rate for a fourth straight meeting.
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The S&P/ASX200 rose 59.9 points on Wednesday, up 0.69 per cent, to 8,717.7, as the broader All Ordinaries improved by 62.5 points, or 0.7 per cent, to 8,945.1.
Interest rate-sensitive stocks led the gains after an unexpected dip in April headline inflation and a soft jobs report last week likely gave the RBA room to keep rates on hold at 4.35 at its June meeting.
However, with the impacts of the Middle East energy crisis still filtering through the economy and the US-Iran conflict soon entering a fourth month, upside risks to price growth remain.
The Australian dollar is buying 71.55 US cents, down slightly from 71.65 US cents on Tuesday at 5pm.
