* STOXX 600 slides from eight-month high hit earlier onTuesday
* Airbus and its suppliers fall on threat of U.S. tariffs
* Tech stocks slide, SAP hit by HSBC, UBS rating downgrades (Updates to close)By Aaron SaldanhaApril 9 (Reuters) - European shares slid on Tuesday, withmost sectors falling after the United States threatened to slaptariffs on goods from the European Union, with worriescompounded by the IMF cutting its global growth forecast.The U.S. Trade Representative proposed a list of EuropeanUnion products late on Monday on which to slap tariffs inretaliation to more than $11 billion of EU subsidies to Airbusthe World Trade Organization has found cause "adverse effects"to the United States.Piling on the uncertainty, the IMF on Tuesday cut its globaleconomic growth forecasts for 2019, citing a potentiallydisorderly British exit from the European Union as a key risk. "It's been long accepted that while Europe hasn't beenstrongly targeted yet, it was going to be the case once Chinawrapped up, and Europe would be next," said Craig Erlam, seniormarket analyst at OANDA in London.The pan-region STOXX 600 index fell 0.3 percent,slipping away from an about eight month-peak seen earlier in theday. Germany's trade-sensitive DAX dropped 0.9 percent.
Airbus slid 1.6 percent after the United Statesincluded large commercial aircraft and parts on its proposedtariff list of EU products. The European planemaker said it sawno legal basis for the move. "It's only natural that Airbus will be among those targets,because its such an important firm for Europe," said Oanda'sErlam, adding,"I think the timing of it probably is not toocoincidental, given the fact there has been so much tension onBoeing."Airbus's stock has broadly benefited from issues plaguingrival Boeing Co's after an Ethiopian Airlines Boeing 737MAX plane crash spurred a production cut by the U.S. company.Suppliers to Airbus such as Safran SA , Leonardo and Rolls-Royce Holdings shed between 1.3percent and 2.1 percent on the day.Safran's stock has been hit in recent weeks, as the Frenchfirm has been swept up in the turmoil around Boeing Co, to whoma Safran-General Electric Co joint venture suppliesengines.
Premier Li Keqiang of China, the United States' long-time
trade enemy, promised his European Union hosts Beijing will nolonger force foreign firms to share sensitive know-how whenoperating in China and was ready to address industrialsubsidies. European technology stocks had a particularlybruising day, falling 1.5 percent in their worst session in twoand a half weeks.SAP led losses on the sector index with a 3.4
percent slide after it was downgraded by UBS and HSBC. The stockfell for a fourth straight day. Oil and gas stocks slipped 0.8 percent, afterhitting a near six-month peak earlier on Tuesday. Global oilbenchmark Brent fell on Russian comments signalling thepossible easing of a supply-cutting deal with OPEC. Bank stocks edged up 0.1 percent, rising for thefirst time in three sessions to help restrain the broadbenchmark from incurring a steeper loss.
The European Central Bank is expected to hold borrowingcosts on Wednesday, the same day British Prime Minister TheresaMay's request to delay Brexit until June 30 will be formallydiscussed by EU leaders at a special summit. Swiss drugmaker Novartis ended 2 percent lowerafter completing the spin off of its eyecare unit Alcon , whose stock jumped about 40.2 percent. Merck KGaA slid 2.6 percent after winning thebacking of Versum's board for a sweetened $6.5 billiontakeover bid, overturning Versum's agreed merger with Entegris . Helsinki-listed DNA surged 8.6 percent afterNorway's Telenor agreed to buy a 54 percent stake inthe Finnish telecoms firm for 1.5 billion euros ($1.69 billion).Telenor shares ended 0.8 percent lower. (Reporting by Aaron Saldanha, Additional reporting by MedhaSingh and Susan Mathew in Bengaluru;Editing by Alison Williams)
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