# Cash is king as emergency stimulus fails to stop market panic

> Stocks, bonds, gold and commodities all fell as the coronavirus spread and investors and businesses sought hard cash. The sell-off came after an early stabilisation attempt, despite an ECB pledge to buy 750 billion euros of assets.

- Date: 2020-03-19 · published 2020-03-19T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/6272-cash-is-king-as-emergency-stimulus-fails-to-stop-market-panic
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Corn](https://feedsoft.ai/c/CORN.md), [Soybeans](https://feedsoft.ai/c/SOY.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

Broad liquidation across commodities means prices are falling under cash demand rather than fundamentals, so feed buyers may see weaker prices in the short term even without a change in supply.

## Read by commodity

- DXY: bullish ▲
- SOY: bearish ▼
- WTI: bearish ▼
- CORN: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| WTI | 2020-03-20 | 1 | -15.5% | -3.6 | A cash-raising liquidation across all assets despite stimulus on 19 March carried into 20 March and added to the selling pressure on oil. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2016-11-14 | [Emerging market bond, currency markets face ‘meltdown’ after Trump's win](https://feedsoft.ai/events/74153-emerging-market-bond-currency-markets-face-meltdown-after-trump-s-win.md) | +1.4% | +0.8% |
| DXY | 2018-08-30 | [Fresh Stress Grips Weakest Emerging-Market Currencies](https://feedsoft.ai/events/63696-fresh-stress-grips-weakest-emerging-market-currencies.md) | +0.9% | +0.3% |
| DXY | 2021-06-21 | [The rand goes from best-performing to worst-performing emerging market currency - Moneyweb](https://feedsoft.ai/events/46874-the-rand-goes-from-best-performing-to-worst-performing-emerging-market-currency.md) | -1.0% | +0.4% |
| DXY | 2021-01-08 | [Treasury Yield Surge Rattles Emerging-Market Currencies in Asia - Infobae](https://feedsoft.ai/events/49393-treasury-yield-surge-rattles-emerging-market-currencies-in-asia-infobae.md) | -0.1% | +0.7% |
| DXY | 2017-06-28 | [ECB says markets over-reacted to Draghi’s stimulus signals – The Irish Times](https://feedsoft.ai/events/70717-ecb-says-markets-over-reacted-to-draghi-s-stimulus-signals-the-irish-times.md) | +0.1% | -1.9% |
| CORN | 2020-03-19 | [Why the U.S. dollar’s relentless rally is causing pain for emerging markets - MarketWatch](https://feedsoft.ai/events/7018-why-the-u-s-dollar-s-relentless-rally-is-causing-pain-for-emerging-markets.md) | +1.1% | -1.8% |
| CORN | 2020-03-30 | [Ethanol Market Is Disturbing to American Farmers. And Now There's Covid-19.](https://feedsoft.ai/events/54231-ethanol-market-is-disturbing-to-american-farmers-and-now-there-s-covid-19.md) | +3.6% | -5.7% |
| CORN | 2019-03-28 | [No, Brazil's Currency Is Not Going To R$5 If Pension Reform Fails](https://feedsoft.ai/events/60306-no-brazil-s-currency-is-not-going-to-r-5-if-pension-reform-fails.md) | -2.6% | -4.6% |

## Sources

- reuters.com: https://www.reuters.com/article/global-markets/global-markets-cash-is-king-as-emergency-stimulus-fails-to-stop-market-panic-idUSL4N2BC25Q/

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