Move

• U.S. Economy Expected to Show Momentum, Despite Storms (WSJ)
• As Trump tax comes to floor, failure could spell stocks selloff (Reuters)
• Washington’s Biggest Mystery: What’s in the Republican Tax Plan? (BBG)
• Spain set to impose direct rule in Catalonia as crisis spirals (Reuters)
• Catalans Send Emissary to Madrid to Plead for a Deal (BBG)
• Catalan Leader Runs Out of Options as Streets Demand Secession (BBG)
• Trump releases some JFK files, blocks others under pressure (Reuters)

The global risk-off mood accelerated overnight on Trump "stability concerns", coupled with fallout from the Spain terrorist attack and lingering North Korea tensions, even if the VIX is off its latest highs, trading just above 15. Investors fled into German and U.S. Treasury bonds and bought gold for the third day in a row, as the appeal of such top-notch assets grew further due to a deadly attack that killed at least 13 people in Barcelona.

S&P futures are sliding this morning, down 0.4% and tracking the accelerating decline in European and Asian stocks, driven by a move higher in global interest rates, which started with Japanese 10Y yields rising to 0.1% for the first time since February, but mostly Bund yields which spiked after tripping stops, and jumped as high as 0.53% for the first time since early 2016. Oil climbs, dollar and gold slide. Economic data include initial jobless claims, trade balance, Markit PMI readings.

With a record low turnout, less than 50% of eligible voters are expected to cast their votes in today's first round of the French parliamentary election...

...  projections show Macron's Republique en Marche party winning by a landslide, set to hold a giant majority with anywhere between 400 and 445 seats in the 577-member National Assembly.

As Reuters adds, according to two pollsters, IPSOS and Kantar Sofres, his Republic On the Move (LREM) party and its ally Modem were set to win well over 400 seats in the 577-seat National Assembly.

European, Asian stocks and S&P futures all drop after traders were left with a sour taste from the potential fallout of Donald Trump’s order halting some immigration and ahead of central bank decisions from the U.S. and Japan.  Markets in Hong Kong, China, Malaysia, Korea, Singapore, Taiwan and Vietnam are all shut due to the Lunar New Year public holiday, leading to a quiet Asian session. Oil rebounded after sliding as much as 0.7%.  Gold was unable to hold its overnight gains and has dipped into the red to $1,190 after rising just shy of $1,200 in early trading.