European and US 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. Richard Hunter, the head of markets at the trading platform Interactive Investor, said it was “the return of the Taco trade”. Neil Wilson, a strategist at Saxo, said: “From the market point of view, it’s the classic Taco trade. Gold has served as a haven for investors at a time when many have questioned the long-term attractiveness of US assets. “Avoiding a tit-for-tat trade war is a positive development for the global growth outlook and supports our outlook for stronger growth this year.”

Source: The Guardian January 22, 2026 20:54 UTC