[MARKET ANALYSIS] Spanish PM Sanchez is reportedly mulling a snap election, commentary due at 08:00BST

TLDR: Spanish PM Sanchez’s government unveiled emergency measures to support the regional housing market. However, he failed to pass the housing bills through the Spanish Congress, facing blocks from right-wing opposition. There is now increasing pressure for the PM to call an early election, with Politico suggesting it could be as early as November 29. The PM is set to speak at 08:00 BST / 03:00 EDT. El Pais, citing sources, suggests that the PM is leaning towards calling a snap election. If he opts not to call an election, he could try again to pass the housing bills through Congress. European fixed income has been worried about the French fiscal situation over the past week or so, and there has been growing risk of spillover into periphery peers. Should Spain call an election, regional fixed income could be set for a poor session, despite cooler energy prices. Taking a look at the EUR, underperformance is clear, with the single currency off by c. 0.5% vs the USD. Current polling: PSOE and Sumar together are the ruling left-wing coalition, with the former currently polling at 26.2%, and Sumar at 11.9% of the vote. Sanchez’s PSOE has fallen 5.5% since the last election. People’s Party (PP): Polls the highest with 32.4%; historically, the party has found it hard to form a coalition with moderate parties. Vox: Polls place the party in third place with 18.2%, and rising c. 5% from the last election; seen as a far-right alternative to PP. via PolitPro