Taco Thursday: European stocks rise after Trump ‘chickens out’ on tariff threat

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.