Stocks fall as central bankers turn more hawkish

Markets mostly fell on Tuesday.

The S&P 500 fell 0.8 percent and the STOXX Europe 600 fell 0.8 percent. However, the Nikkei 225 rose 0.4 percent.

Oil rose for a fourth consecutive day. West Texas Intermediate crude rose 2 percent while Brent rose 1.8 percent.

The fall in US stocks was partly attributed to a delay in a vote on health care legislation but Allianz chief economic advisor Mohamed El-Erian told CNBC that liquidity is the main driver of the stock market.

He said that corporate cash, wealthy investors willing to buy on the dip and central bank monetary policy have been the main forces driving the market but that the last component is diminishing.

“They're getting more hawkish,” El-Erian said of central bankers. “They're getting more worried about financial stability and that suggests to the market that perhaps they're not going to be as supportive as they've been in the past.”