Stocks and bonds fluctuated in Europe and Asia as investors assessed the initial remarks of President Donald Trump's new economic adviser. U.S. stock futures pared gains, and Treasury bonds rose. Gold fell further when new White House appointee Larry Kudlow said he would sell the metal and buy the dollar. Norway's krone rose to its strongest level since early February after its central bank signaled faster interest rate hikes. The yen gained for a second day, and benchmark Treasury bonds advanced after a brief earlier decline.
Traders are assessing the prospects for increased U.S. trade protectionism after new economic adviser Kudlow signaled his support for a strong dollar and took a tough line against China. The lack of U.S. retail sales data provided the last major economic indicator before the Federal Reserve's policy decision next week. While an interest rate hike at the meeting is considered a given, the question remains as to whether U.S. policymakers will raise their expectations for the pace of future increases.
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