London — April’s equities rally risked running out of steam on Tuesday, as a US threat to slap tariffs on hundreds of European goods and expectations of another chunky chop to the International Monetary Fund’s (IMF) global growth forecasts tested investors’ stamina. Asia had eked out an eight-month high overnight but Europe was left flat after the office of the US trade representative sent its proposals to the World Trade Organisation (WTO), saying the EU had provided $11bn worth subsidies to Airbus. The plane maker’ shares dropped as much as 2.5% in early deals. Many of its key suppliers lost between 0.7% and 1.2%, though it could have been worse and most of Europe’s big bourses clawed back to level. Aberdeen Standard Investment’s head of global multi-asset strategy, Andrew Milligan, said: “Signals like this just remind people ... that the strategic rivalry between the US and other countries is serious and is not going to go away.” The day’s other focus was set to be the IMF’s half...
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