MORNING BID EUROPE-The pain in Spain and a Brexit test?

* A look at the day ahead from European Economics and Politics Desk Chief Jeremy Gaunt and Nigel Stephenson, chief correspondent, EMEA markets. The views expressed are their own.

LONDON, Aug 15 (Reuters) - A couple of events due later in the week are worth a heads up, even if it is midsummer up here in the northern hemisphere.

They concern Brexit, inevitably, and a political logjam in Spain.

The former comes by way of retail sales for July, due on Thursday and some of the first hard data available - as opposed to surveys - since Britons voted in June to leave the European Union.

Not all of what transpires will be down to Brexit, however.

If sales fall, some of that will be due to a general and longer-standing slowdown in the economy. If they rise, it is likely summer spending will be as much of a factor as any feeling that Brexit is all overblown.

Over in Spain, Wednesday brings a vote by the leadership of the conservative People's Party (PP) on a package of reform measures offered by the centrist Ciudadanos party as a condition of its support to form a government.

If Prime Minister Mariano Rajoy's PP turns it down, it will put huge pressure on him to call another election - the third in less than a year. It is by no means certain that such an election would make the political situation any more clear-cut.

GLOBAL MARKETS

The dollar is still suffering the impact of Friday's below-forecast retail sales data. It is flat against most major currencies, though the yen rose slightly even though Q2 GDP data was weaker than expected. Chinese stocks are up some 3 percent in anticipation of more economic stimulus after weak July economic data. European shares opened flat, with activity likely to be limited by a holiday in several countries. Oil is up on expectations of producer action to curb output.

Upcoming data/event/themes for market reports on Monday:

* U.S (Other OTC: UBGXF - news) . June New York Fed manufacturing

* Russian July industrial output (or July 16)

* South Korea July trade

* European corporate events: H&M sales, Bovis Homes (LSE: BVS.L - news) , Abengoa (LSE: 0NUI.L - news)

* Market holiday in Italy/Spain/France/Greece and others

(Editing by London desk)