The events in Spain are causing some concern in the financial markets today, according to Kathleen Brooks, research director at Forex.com. She warned today that the sight of protestors on the streets of several Spanish cities will prompts fears that the Spanish government might relax its fiscal plans. That might make Spain's sovereign debt a less attractive purchase.
Brooks added that investors are nervously awaiting tomorrow's budget, which will include tens of billions of euros of spending cuts. She writes:
The problem is that the Budget may uncover even more negativity as the health of the autonomous regions' finances is unveiled. There is every chance that this will require some sort of fiscal transfer from the central government to the regions, weighing on the overall position of Spain's finances.