Australian shares log decade's worst November as expensive banks slide

Market Performance - The benchmark S&P/ASX 200 index ended 0.04% lower at 8,614.10, falling 3% in November, marking its biggest drop in eight months and the weakest November performance since 2014 [1][8] - Banks fell 0.7% on Friday, with a total decline of 7.4% for November, representing their largest monthly drop since June 2022 [2][8] Sector Analysis - Softer earnings earlier in the month indicated persistent competition affecting margins and rising costs limiting profits for major lenders [4][8] - The Commonwealth Bank of Australia, one of the most expensive banks globally, dropped more than 11% in November, while the other three "Big Four" banks lost between 3% and 8.1% [8] Economic Indicators - Strong inflation and rising employment data suggest that the Reserve Bank of Australia's current policy easing cycle may have concluded [5][8] - Continued rotation into resource stocks is expected, with financials anticipated to struggle until inflation moderates or economic data weakens [6][8] Commodity and Technology Stocks - Miners rose 0.5% on Friday, achieving their fifth consecutive monthly gain, while gold-linked stocks increased by 9.9% in November due to expectations of a U.S. interest rate cut in December [6][8] - Technology stocks rose 0.9% but experienced their steepest monthly decline since February, attributed to volatility surrounding AI-driven trades [7][8] New Zealand Market - New Zealand's benchmark S&P/NZX 50 index ended 0.4% higher at 13,489.15, but recorded its first monthly decline in seven [7][8]