By Sara Sjolin, MarketWatch

LONDON (MarketWatch) -- European stock markets broke a two-day losing streak on Tuesday. Heavyweights such as UBS AG, Novartis AG and BP PLC, which all posted solid quarterly -earnings reports, helped deliver a boost to region's markets.

The broad-based gains came after most European markets slumped on Monday, as banks moved sharply lower, in the wake of stress-test results from the European Central Bank and European Banking Authority. Read: Banks shares catch a cold even after surviving health check

Market reaction: The Stoxx Europe 600 index climbed 1% to close at 328.25 on Tuesday, recovering from a 0.6% slide on Monday.

Germany's DAX 30 index rallied 1.9% to 9,068.19, as all companies in the benchmark closed in positive territory.

France's CAC 40 index added 0.4% to 4,112.67, while the U.K.'s FTSE 100 index rose 0.6% to 6,402.17.

Earnings: Shares of Novartis rose 1.8% after the Swiss drug maker said third-quarter profit jumped 44%.

UBS (UBS) added 5.8% after the Swiss bank reported a rise in third-quarter earnings, although it said it was hit by 1.8 billion Swiss francs ($1.9 billion) in legal provisions.

BP (BP) rose 1.6%, after the energy major said it will raise dividends for the third quarter to 10 cents, a 5.3% increase on the year. The company also said Russia sanctions have had no material impact on the company, although it has felt a squeeze from the falling ruble.

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

BP (NYSE:BP)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more BP Charts.
BP (NYSE:BP)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more BP Charts.