Halister News

(Bloomberg) -- The fact that the leftist grouping Unidos-Podemos came third, with no improvement relative to their December 2015 result, should cap downside for Spanish assets when the European markets open, Barclays analysts Apolline Menut and Antonio Garcia Pascual write in client note.

• Spanish politics could appear benign compared to periphery economies, given the higher risk situations in Portugal, Greece and, more importantly, in Italy over coming months
• The results will contribute to the uncertainty that the U.K. exit has brought to the European outlook
• A new government is more likely than a third round of elections, with a minority govt the most likely option, led by either the PP party or by a PSOE alliance with Unidos Podemos
• NOTE: PM Mariano Rajoy consolidated his position in Spain’s general election as voters backed away from insurgent political forces amid Brexit mayhem; analysts expected there would be no clear winner in the election re-run