Markets mixed, "downside risks are increasing"

Markets were mixed on Tuesday, with the S&P 500 falling 0.3 percent but most other markets gaining.

Germany's economy contracted 0.1 percent in the second quarter from the previous quarter.

"Downside risks are increasing for both the global economy and markets," UBS Wealth Management Chief Investment Officer Mark Haefele said in a note as he announced a shift to an "underweight" recommendation on equities.

Nevertheless, Haefele said UBS still thinks the US can avoid a recession in 2020.

A slowdown in the US is becoming evident though.

US economic data on Tuesday showed that the Case-Shiller home price index rose 2.1 percent in June over the past 12 months, down from a 2.4 percent increase the previous month, while the Conference Board’s consumer confidence index fell to 135.1 in August from 135.8 in July.