* Banks gain ahead of full-year results
* Resources, energy shares drop
* Index up 6.6 pct so far in Oct
* 90 shares up, 86 down, 24 unchanged (Adds analysis, quotes, stocks on the move)
By Swati Pandey and Ian Chua
SYDNEY/WELLINGTON, Oct 27 (Reuters) - Australian shares barely moved on Tuesday, caught between gains in banks ahead of full-year results and losses in resources on worries about waning demand in China and Europe.
The S&P/ASX 200 index .AXJO was mostly unchanged at 5,349.7 points by 0100 GMT. The benchmark slipped 0.1 percent on Monday. The index is up 6.6 percent in October so far, on track for its best monthly performance since 2011.
"The Aussie market looks unlikely to set the world on fire as investors prepare for the major banks' half yearly reports this week," said Mark Lennox, senior private adviser at HC Securities.
National Australia Bank NAB.AX will likely post record cash profit on Wednesday while ANZ Banking Group ANZ.AX is set to report its slowest earnings growth since the global financial crisis on Thursday.
"If the banks indicate lower payout ratios over the medium term, then clearly this will be a negative for the sector and the market in general."
Trading has been subdued over the past week ahead of U.S. Federal Reserve meeting on Tuesday and Wednesday and the Bank of Japan's policy meeting on Friday. A patchy U.S. corporate earnings season has also dulled investor appetite.
Market analysts have been expecting an early start to the "Santa Claus rally" although the medium-to-long-term outlook is still negative as concerns about global growth refuse to abate as commodity prices slide.
NAB shares were on trading halt on Tuesday. Commonwealth Bank CBA.AX was up 0.8 percent while ANZ and Westpac rose about 0.3 percent each.
Miners were trading in red with BHP BHP.AX and Rio RIO.AX off 0.5 percent and 1 percent respectively. Forestcue fell over 5 percent.
Energy-related shares such as Woodside Petroleum WPL.AX and Origin ORG.AX fell 2-4 percent.
Healthcare shares rallied with CSL CSL.AX up 1 percent and Sirtext rising 2 percent.
New Zealand stocks returned from the Labour Day long weekend re-energised with the NZX 50 index reaching a new all-time high. The benchmark climbed as far as 6,002.60 and was last at 5,993.06, up 0.4 percent, or 22.39 points, on the day.
The index is on track to close higher for a 12th session, thanks in part to Friday's interest rate cut in China, one of New Zealand's biggest trading partners.
Among the gainers, entertainment company SKY Network Television bounced 2.2 percent, snapping three straight sessions of declines, while Orion Health Group put on 2.0 percent.
Also in demand, Fisher & Paykel Healthcare Corp added 2.0 percent and Westpac Banking Corp climbed for a second session, putting on 1.7 percent.