Headlines from Spanish exit polls:
- Conservatives retain power but short of majority
- Conservatives to win 114-124 seats vs 176 needed for absolute majority
- Socialists would have 79-85 seats in election, Podemos 70-80 seats, Ciudadanos 46-50 seats
The ruling PP party led by Rajoy was expected to win and fall short of a majority. The big news is that the two-party system took a big hit.
The big question now is how Rajoy can govern. There is talk he could be supported by Ciudadanos, which started in Catalonia as an anti-independence party.
Don't expect a big effect on the euro as markets open for the week. In early trading it's flat at 1.0870.
For more on the election, see the great preview from Yohay at Forex Crunch.
