The Australian share market finished slightly higher despite big falls on overseas markets as instability in Europe continues.

At the close of trade on Tuesday, the benchmark S&P/ASX200 index was up 9.2 points at 4,072.9.

The broader All Ordinaries index was up 7.2 points at 4,118.4.

On the ASX 24, the June share price index futures contract was 29 points lower at 4,078 with 33,501 contracts traded.

Cameron Securities’ Adrian Leppinus said the Australian market was firmer than European and US markets which bounced on news of a Spanish bank bailout.

“It was a bit of a strange day,” he said.

“We’ve held up reasonably well with banks and defensive stocks performing well.”

However, he said as investors remained cautious about the situation in Europe and Spain, Greece and Italy would again became the focus.

Wall Street’s major indices sank by more than 1.1 per cent overnight, as investors took profits from the previous session’s gains and looked toward the Greek election.

Resource stocks weighed on the local market, with BHP Billiton down 19 cents to $31.72 and Rio Tinto down 94 cents to $54.65.

Banks and financial stocks were higher, with Commonwealth Bank leading the charge, rising 35 cents to $50.82.

ANZ Bank led the big four lenders with a gain of 21 cents to $21.77.

AMP was also stronger, up 10.5 cents to $3.91.

Qantas was another strong performer, regaining some of the ground it lost last week.

Its shares were up 11 cents, or 11.3 per cent, to $1.08.

Qantas Airways has set up an internal task force to monitor potential takeover attempts as a slumping share price raises the prospect of private equity or other parties making a move.

Shares in Fairfax Media were flat at 60 cents after the company warned its revenue in the six months to June 30 would be eight per cent lower than the previous corresponding period.

National turnover was 1.4 million securities, worth $3.6 billion.