# Risk of spillovers from US equity market corrections to euro area markets and financial conditions

> The ECB Financial Stability Review for May 2021 examines the risk that a correction in US equity markets could spill over into euro area markets and financial conditions. It notes US equity prices are over 20% above pre-pandemic levels and cyclically adjusted P/E ratios are historically high, with a possible rise in US Treasury yields as a trigger.

- Date: 2021-05-19 · published 2021-05-19T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/47297-risk-of-spillovers-from-us-equity-market-corrections-to-euro-area-markets-and
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A sharp US equity sell-off or rise in Treasury yields could strengthen the dollar and tighten financial conditions, which tends to pressure commodity prices. The analysis is a risk assessment rather than a new market shock.

## Read by commodity

- DXY: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2018-02-23 | [Bangkok Post - BoT head cautions against market corrections from mismatches](https://feedsoft.ai/events/66764-bangkok-post-bot-head-cautions-against-market-corrections-from-mismatches.md) | +0.6% | -0.6% |
| DXY | 2019-09-20 | [Take Five: U.S. money market ruckus - one-off or warning? \| Financial Post](https://feedsoft.ai/events/57276-take-five-u-s-money-market-ruckus-one-off-or-warning-financial-post.md) | +0.5% | -0.8% |
| DXY | 2021-10-13 | [S.Korea's won and Philippine peso rise, U.S. inflation in focus \| Financial Post](https://feedsoft.ai/events/44799-s-korea-s-won-and-philippine-peso-rise-u-s-inflation-in-focus-financial-post.md) | -1.0% | -0.9% |
| DXY | 2025-11-12 | [US Dollar: Consolidation Persists While Risk Assets Rally Across Global Markets \| Investing.com](https://feedsoft.ai/events/22169-us-dollar-consolidation-persists-while-risk-assets-rally-across-global-markets.md) | -0.1% | -0.5% |
| DXY | 2017-12-13 | [What bond and currency traders are looking for from Yellen’s Fed decision - MarketWatch](https://feedsoft.ai/events/67656-what-bond-and-currency-traders-are-looking-for-from-yellen-s-fed-decision.md) | -0.4% | -1.8% |

## Sources

- ecb.europa.eu: https://www.ecb.europa.eu/press/financial-stability-publications/fsr/focus/2021/html/ecb.fsrbox202105_03~5ddb769981.en.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.