Market flash: the taco trade is deja vu for markets

Edmond de Rothschild AM’s Market Flash (23 Jan 2026) summarises how Greenland-linked tariff threats and Davos messaging shifted global risk sentiment.

• Trump floated +10% tariffs from 1 Feb on EU countries involved in Greenland exercises, with scope to rise up to +25% by June, briefly lifting inflation and defence-spending concerns.

• Risk assets recovered after Davos de-escalation, a Ukraine peace meeting announcement, and reduced Fed uncertainty; gold hovered near $5,000/oz.

• Positioning stays pro-risk (Japan and EM equities favoured), while caution is maintained on long-end duration and investment-grade valuations.

Explore the full flash for regional equity drivers and cross-asset positioning signals.