January 7, 2021

NEW YORK (Reuters Breakingviews) - America is a safe haven for financial investors around the world. Wednesday’s violence in Washington, D.C., fueled by a president who has defied the will of the people, puts the United States and its sanctuary status to a serious test.

Supporters of President Donald Trump stormed the U.S. Capitol on Wednesday seeking to undo his election loss and prevent the certification of Joe Biden as president-elect. Lawmakers were evacuated, gunshots were fired and teargas deployed. Yet markets were, by late afternoon, little moved. Yields on 10-year Treasuries fell slightly during the latter half of the day. The dollar didn’t budge against major trading partners’ currencies, and the S&P 500 Index actually rose.

This calmness may be partly an illusion. A delay is no real threat to Biden’s inauguration on Jan. 20, and an assault on the seat of government by riled-up fanatics is not an organized coup. While the sight of intruders with their feet on senators’ desks is shocking, Washington is no stranger to protest. But in nervous times, investors buy dollar assets. That doesn’t mean they’re not nervous.

Read more:

https://www.reuters.com/article/us-usa-election-breakingviews/breakingviews-americas-safe-haven-status-gets-violent-test-idUSKBN29B2YR