US officials say the US Capitol building is now secure

Ross J Burland FXStreet

US officials say the US Capitol building is now secure.

Fox is told the “goal” is for House/Senate to come back around 8 pm et. But the chambers are trashed. Glass is everywhere. Slippery floors. And this is during a pandemic. Unclear if they can move that quickly.
— Chad Pergram (@ChadPergram) January 6, 2021

The US House will continue with certifying the election, which markets are taking in their stride as a ceremony of the result ahead of the inauguration day on January 20.

Meanwhile, the incumbent US President Donald Trump has tweeted.

These are the things and events that happen when a sacred landslide election victory is so unceremoniously & viciously stripped away from great patriots who have been badly & unfairly treated for so long. Go home with love & in peace. Remember this day forever!
— Donald J. Trump (@realDonaldTrump) January 6, 2021

Market implications

Snap poll on US Capitol breach - 62% of voters see it as a threat to democracy - 71% oppose actions of those in the Capitol, although Republicans split - 66% say Trump to blame - By 50% to 42% think it appropriate to remove Trump from office immediately.

Global stock indexes were mostly higher and 10-year US Treasury yields topped 1% for the first time since March.

Stocks, however, wobbled towards the end of the day as hundreds of protesters stormed the US Capitol and sought to force Congress to undo President Donald Trump's election loss.

This resulted in a woman dying who was shot during the siege.

The Dow and S&P 500 ended up and the Nasdaq finished lower.

The Democratic Party will now control both houses of Congress, which boosts that market's confidence in the prospects of President-elect Joe Biden's legislative agenda.

The significance is that a Democrat-controlled Congress would lead to more fiscal stimulus and infrastructure spending, and ultimately is expected to pressure the US dollar.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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