Markets rally across the world as Trump climbs down on tariffs and strikes Greenland deal
Markets have rebounded after Trump dropped his plans to impose tariffs on Europe as he struck a deal over Greenland.The return of the TACO - Trump always chickens out - trade has calmed investors' nerves, sending stocks higher. The FTSE 100 jumped at the open, trading up 0.72 per cent to 10,210 points, while the FTSE 250 climbed 0.79 per cent to 23,253.Relief spread across markets in Asia too, with the Nikkei in Japan up nearly 2 per cent, while South Korea’s Kospi passed the 5,000 mark for the first time.It came as Trump announced on Wednesday night that he would dial down his trade war after striking a deal with Nato over Greenland.In a Truth Social post, Trump said after a ‘very productive meeting’ with the Secretary General of Nato Mark Rutte, they have ‘formed the framework of a future deal with respect to Greenland. On the front foot: The FTSE 100 and FTSE 250 both jumped on the open in relief rally ‘This solution, if consummated, will be a great one for the United States of America, and all Nato Nations.‘Based upon this understanding, I will not be imposing the Tariffs that were scheduled to go into effect on February 1st.’The S&P 500 jumped 1.2 per cent on Wednesday after the statement, a day after the prospect of another trade war sparked its worst sell-off since October.Gold held steady but slipped 0.4 per cent to $4,834 this morning, while silver fell back by 1 per cent to $94.67 as tensions eased. Over the week, the precious metals are up 5 and 6 per cent, respectively.Richard Hunter, head of markets at Interactive Investor: 'The President’s tendency to shoot from the hip still unsettling sentiment. There were reportedly increasing signs of a fractious relationship between the US and Europe'. He added: 'As such, investors are yet to fully regain their mojo, even in the US where the main indices remain down for the week despite the widespread rises yesterday.'Landsec, British American Tobacco and EasyJet all led the FTSE 100's biggest risers, all trading up over 2.5 per cent. Beazley, whose shares have rallied since a takeover bid from Swiss insurance giant Zurich earlier this week, fell 4.9 per cent after it announced it had rejected the bid. Miners Endeavour and Antofogasta were among the FTSE's biggest fallers. AJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you
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Markets rally across the world as Trump climbs down on tariffs and strikes Greenland deal
