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Rajoy May Benefit From Brexit If Spaniards Seek Safe Haven

  • Polls open on Sunday as Spain tries to end six-month impasse
  • Podemos’s support may be hurt if voters decide to avoid risk
Mariano Rajoy.

Mariano Rajoy.

Photographer: Pau Barrena/Bloomberg
Updated on

Caretaker Prime Minister Mariano Rajoy could be a key beneficiary from the Brexit vote as the country gears up for a general election on Sunday, with investors reeling from the impact of the U.K.’s decision to leave the European Union.

The euro region’s fourth-largest economy is holding its second election in six months with markets tumbling after Thursday’s referendum in Britain wrong-footed traders. The pound plunged by a record and the euro slid by the most since it was introduced in 1999 on the result while oil and industrial metals sank. The yen, gold and sovereign debt all soared as investors piled into haven assets.