Gains come after US president says he will not use military force to acquire territory and cites ‘framework deal’
European markets rose on Thursday after Donald Trump cancelled plans to impose fresh tariffs on eight European countries, in what analysts said was a return of the “Trump Always Chickens Out” (Taco) trade.
The FTSE 100 gained 0.8% to a high of 10,225 points, while Germany’s Dax and France’s Cac were up 1.4%. The pan-European Stoxx 600 was also up 1.4% and Wall Street is forecast to open higher on Thursday.
It was the first rise for European stock markets this week, after Trump had previously announced plans to hit Germany, France, the UK, Denmark, Sweden, the Netherlands, Norway and Finland with fresh tariffs from 1 February until an agreement was reached for the US to buy Greenland.
The president only withdrew his threat of using military force to gain Greenland on Wednesday during a speech at the World Economic Forum in Davos, Switzerland. Later on Wednesday he posted on the social network he owns that he would not impose the tariffs after claiming to have reached an unspecified deal with the Nato secretary general, Mark Rutte.
