WORLD NEWS FOR MONTENEGRO DIASPORA
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AUTHOR:M.J. GDNUS
The trade agreement between the United States (US) and the European Union foresees tariffs of 15 percent, and the EU has committed to buying energy products from the US worth 750 billion USD by the end of US President Donald Trump's term.
The initial reaction of European stock exchanges to the agreement was positive, as the STOXX 600 index began trading on Monday with a one percent increase, but this pan-European stock market index was already in the red by the end of the day, and car companies were leading the way on the negative side of the exchange rate.
Of course, it sounds better that the tariffs are 15 percent, not 30 percent (last year the average tariff rate in the US was only 2.5 percent), but the prevailing opinion is that Europe has bowed to the US, SEEbiz reports.
This is also confirmed by the foreign exchange markets, as the dollar has significantly gained value against the euro by Thursday. At 1.139 USD, the euro was the lowest in the last seven weeks.
Another strong reversal followed on Friday, with the dollar losing one percent after the publication of data on the labor market for July, the most since April.
