Mark your calendars for June Spain election

June is getting risk heavier than ever. We already have British referendum over stay in European Union, which is on June 23rd and enough to rattle global markets, FOMC rate decision in which FED is largely expected to raise rates to keep the pace gradual and Bank of Japan, which may take measures to shake up yen bulls and push for inflation.

Now just add an election to the mix.

King Felipe of Spain has dissolved parliament today and called for reelection on June 26th after more than four months of negotiation failed to yield a government there. This will be second election in six months.

However, polls are suggesting another election outcome will be similar to the previous one and no party or coalition will be able to gather majority.

Acting Prime Minister, Mariano Rajoy’s Popular party is once again expected to lead with 29% of the vote, trailed by Socialist with 20% and anti-austerity Podemos with 16-18% of the votes.

Such an outcome will not only be worst for Spanish bonds and index IBEX 35 but will weaken the Euro too.