(Bloomberg) — European stocks fell on Tuesday as the earnings reports from major companies BP Plc and Novartis AG did not meet expectations, and increasing market risks restrained movements in what is expected to be an important week for the stock market. The Stoxx Europe Stoxx Index reversed earlier gains to drop 0.2% by 1:30 p.m. London time saw declines in travel and leisure stocks, retailers, and industrials, which were among the largest losers. Earnings reports led to significant market shifts, with Novartis being the main contributor to the benchmark’s decline after the pharmaceutical company reported underwhelming sales growth for several of its major drugs. BP was also impacted, as the oil giant’s stock fell due to an increase in net debt. On the other hand, banks performed well, supported by a rise in HSBC Holdings Plc’s shares following the bank’s announcement of a $3 billion stock buyback, which came after its profits exceeded expectations. Santander Bank Polska SA also performed well, benefiting from robust earnings growth in the third quarter. European stocks have largely remained within a narrow range over the past month due to a variety of risks facing investors. In the UK, attention is focused on the budget announcement on Wednesday, which is anticipated to include tax increases and spending reductions, as traders look forward to Eurozone inflation data coming later in the week. Additionally, with only a week left, the US presidential election is still too uncertain to predict. Hani Redha, portfolio manager for global multi-asset at PineBridge Investments, noted that the US election is likely to be the main driver for the next shift in European stocks. “Considering the current stagnation in the Eurozone’s economy, this factor is expected to be crucial.” For additional information on equity markets: Do you want additional updates on this market?