Markets fall as US raises another tariff threat

Markets were mostly lower on Tuesday.

The S&P 500 fell 0.6 percent and the STOXX Europe 600 fell 0.5 percent. However, the Nikkei 225 rose 0.2 percent.

Market sentiment was affected by news that the office of the US Trade Representative has threatened to levy tariffs on many European goods in retaliation against European subsidies for aircraft manufacturer Airbus.

“The tariff threat is probably what’s moving markets negatively,” said Karen Cavanaugh, senior market strategist with Voya Investment Management.

Meanwhile, the IMF lowered the outlook for global economic growth in 2019 to 3.3 percent from 3.5 percent projected in January.