An Investor Guide to Spanish Elections
- Polls show Socialist premier likely to lead coalition talks
- Sectors in focus include banks, real estate, utilities stocks
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Banks and real estate stocks are the most likely equity sectors to be affected if Sunday’s elections in Spain brings a coalition of the Socialist party and left-wing ally Podemos, a tie-up that could lead to tougher taxes for lenders and real estate investment trusts.
The most recent polls in Spanish newspapers suggest Prime Minister Pedro Sanchez of the Socialists has a chance to return to power provided he can manage tricky negotiations with smaller parties. Investors will be watching the composition of any new coalition closely, with polls showing that all parties are far from a majority.