European shares fell on Tuesday as HSBC shares dropped 6.9% following weak earnings. The pan-European STOXX 600 index fell 0.2% to 639.64 points by 0805 GMT. Investors also stayed cautious as ongoing protests in France added to market worries. Meanwhile, Novartis shares rose 3.1% after the company raised its income guidance.
Oct 27 (Reuters) - European shares fell on Tuesday after disappointing earnings from HSBC weighed on banking shares, while ongoing tensions in France added to investor caution.
HSBC (HSBA.L), opens new tab fell 6.9%, after Europe's largest bank's revenue came in below estimates, in part due to slower growth at its wealth business.
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The losses dragged the bank index (.SX7P), opens new tab that dropped 1.3%. The pan-European STOXX 600 index (.STOXX), opens new tab was down 0.2% at 639.64 points by 0805 GMT, after climbing nearly 0.8% on Monday.
Investor sentiment remained fragile as French student leaders vowed to go on protesting despite government concessions on education, raising concerns as the movement spreads to unions and other activists, stokes unrest and deepens the economic damage.
French equities (.FCHI), opens new tab fell more than 2% last week as protests shook investor confidence in the euro zone's second-largest economy.
Novartis (NOVN.S), opens new tab raised its full-year core operating income guidance, sending the shares of the Swiss drugmaker up 3.1%.