Spain Political Deadlock May Spur New Elections and Market Woes

Here's what to watch.
Photographer: Pau Barrena/Bloomberg
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The deadlock between Spanish political parties makes fresh elections almost inevitable as it’s highly unlikely a government can be formed before the May 2 deadline, analysts say.

With polls still suggesting no one party will secure a majority, a fresh vote risks spurring market volatility and wider spreads, especially as Spain will go to the polls just days after the U.K. referendum on EU membership, they add.