Not sure how todays market movements can be entirely put down to the spanish election.
General macro environment is terrible and getting worse. Nothing but bad news for months now, and it's becoming clear just how bad the state of the eurozone is.
The MF global debacle seems to be getting worse and worse, while commodity margins are being hiked again and again leading to big sell-offs. I think this exacerbates things in the US and asia, there are no safe-havens right now globally.
The real worry is the state of euro banks: a shock (likely) or a downgrade (very likely) could totally hammer these guys. Given the capital ratios of the likes of credit agricole, DB, BNP etc. any large event could lead to bankruptcy or more bailouts. Problem is, the governments can't afford more bailouts and we'll more than likely be looking at a downgrade/counterparty shitstorm if anything happens.
Just saw the numbers for the exposure of the EIB also: truly terrifying. Second (?) biggest lender in the world, backstopped by the EU and in deep to the worst economies in the eurozone. If I had to put my money on the thing to kill the euro this would be it.