THE Australian stock market closed marginally higher as figures showed that economic growth had slowed to a crawl in the September quarter
At the 16.15 (AEDT) close, the benchmark S&P/ASX200 index had risen 5.6 points, or 0.16 per cent, to 3,533.8, while the broader All Ordinaries added 3.1 points, or 0.09 per cent, to 3,476.5.
On the Sydney Futures Exchange, the December share price index contract was 16 points lower at 3,556 on 33,403 contracts, according to preliminary calculations.
Growth figures released on Wednesday showed the Australian economy expanding by just 0.1 per cent in the September quarter, but contracting by 0.3 per cent in the non-farm sector.
CMC Markets analyst David Taylor said the market finished relatively flat after see-sawing from positive to negative territory despite a positive lead from United States markets overnight.
"The big news in the market today was the merger talks between Qantas and British Airways, which pushed Qantas shares higher during the morning trade," Mr Taylor said.
"It was the materials sector that helped push the market higher at the open with mining giant BHP gaining almost three per cent.
"However, its rival, Rio Tinto, dragged the market lower after some analysts slashed their earnings estimate for Rio.
"Another factor in investors' minds today was the much-anticipated September quarter gross domestic product (GDP) figures which came in below forecasts and is further evidence the Australian economy is dangerously close to being in recession."
Meanwhile, the Australian dollar has closed almost one US cent higher after after a positive finish on Wall Street supported investor confidence.
The local currency was stronger despite data showing the Ausralian economy had grown at its slowest pace in eight years.
At 1700 AEDT, the Australian dollar was trading at $US0.6447/52, up almost one US cent, or 1.4 per cent, from Tuesday's close of $US0.6357/60.
During the day, the local unit traded between a low of $US0.6388 and a high of $US0.6474.
The Australian dollar's main move for the day came at the start of the local session, which coincided with the last hour of trade on Wall Street.
The local currency broke above $US0.6400 as the Dow Jones Industrial Average closed up 3.31 per cent, the S&P500 index advanced 3.99 per cent and the NASDAQ ended the New York session up 3.70 per cent.
The unit traded within a tight range for the rest of the local session, but outperformed other commodity currencies such as the Canadian and New Zealand dollars.
AAP