Likely Fed injections in contested U.S. vote would favour tech: BofA

FILE PHOTO: A security guard walks in front of an image of the Federal Reserve following the two-day Federal Open Market Committee (FOMC) policy meeting in Washington, DC, U.S. on March 16, 2016. REUTERS/Kevin Lamarque

LONDON (Reuters) – The Federal Reserve would likely step-in to support financial markets if the outcome of the U.S. presidential election was contested, a move which would benefit stocks in the tech sector, BofA analysts wrote in their weekly fund flow report on Friday.

“Likely aggressive Fed liquidity injections on contested election would favour tech”, the report, which also sees an increased likelihood in a Democratic sweep, read.

U.S. President Donald Trump declined earlier in September to commit to a peaceful transfer of power if he loses the Nov. 3 election to Democratic rival Joe Biden and said he expected the election battle to end up before the Supreme Court.

The president, who trails Biden

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