Shares have halved early losses as better than expected local jobs data lifts spirits, and the dollar, but the overnight tumble in oil prices is still weighing heavily on the energy sector.

Shares close lower despite an afternoon recovery, with a rallying CBA tempering losses among the other banks, while miners forged higher.

Reserve Bank governor Glenn Stevens' wish for a further dive in the Aussie dollar might be granted.

Shares close higher after investors responded to the Murray report by driving bank stocks higher, while Qantas surges on an earnings update and Coke announces job losses.

Timbercorp bought back several million dollars worth of projects from favoured investors while hard sell continued on others.