Why Spain's hung parliament won't dent the economy … yet

A 3% growth rate, the low oil price, a weak euro and no party advocating a eurozone exit meant markets had no cause to panic at the dramatic result

Spain's dramatic election result - a hung parliament and a roughly equal split between left and rightwing parties - was followed by only modest drama in financial markets. The Ibex-35 index of leading companies lost 3.6% and the yield on 10-year Spanish bonds rose eight basis points to 1.78%, but these are not big moves in the face of what is being billed as a momentous shift in the political landscape of a large eurozone country.

Complacency on the part of investors, or a rational assessment that political uncertainty probably won't derail an economy forecast to grow by about 3% this year? On balance, the latter.

Related: Spanish elections: what happens next after the unprecedented result?