The share market closed weaker despite its early gains, with falls posted across all sectors.

IG market strategist Evan Lucas said there was no specific news driving the market on what was a quiet day for trading.

The banks remained a drag on the market, due to speculation about new regulation that might tighten how much capital they must hold, he said.

“We are also waiting on what happens in Japan, where there is a possibility we could see a snap election soon, with suggestions (Prime Minister Shinzo) Abe will go the polls to force home his market leading position,” Mr Lucas said.

The latest economic growth numbers from Japan, a key trading partner for Australia, confirmed it had fallen into recession.

Among the major banks, Commonwealth Bank dropped four cents to $80.95, ANZ lost seven cents to $31.83, National Australia Bank shed two cents to $32.37 while Westpac gained four cents to $32.76.

Resources stocks reversed earlier gains, despite there being no falls in iron ore or energy prices.

Woodside Petroleum shed 26 cents to $38.84, Santos retreated 14 cents to $11.85 and Oil Search lost nine cents to $8.01.

BHP Billiton was four cents lower at $33.18, Rio Tinto dropped 43 cents to $59.47 and Fortescue Metals fell heavily, down 21 cents, or 6.6 per cent, to $2.97.

Retailers were also weaker, with Woolworths down 46 cents at $33 and Coles owner Wesfarmers 11 cents lower at $43.67.

KEY FACTS

* At the close on Tuesday, the benchmark S&P/ASX200 index was down 12.8 points, or 0.24 per cent, at 5,399.7 points.

* The broader All Ordinaries index was down 13.5 points, or 0.25 per cent, at 5,383.1 points.

* The December share price index futures contract was 15 points lower at 5,411 points, with 24,493 contracts traded.

* National turnover was 1.2 billion securities worth $3 billion.