Contested U.S. election results could trigger volatility in markets: BofA survey

[October 13, 2020] LONDON (Reuters) - Nearly three-quarters of investors surveyed by BofA expect a surge in market volatility in the fourth quarter, given the rising likelihood of U.S. election results being contested, bringing the record bear-to-bull summer rally to a halt.

Nagging doubts over whether President Donald Trump would agree to hand over the keys to the White House if he loses have grown in recent weeks. Opinion polls show Trump losing more ground to Democrat Joe Biden as the contenders push toward the Nov. 3 election.

The 224 fund managers with $632 billion assets under management surveyed by BofA last week saw U.S. elections as the second biggest "tail risk" for markets. COVID-19 remained the top worry, the U.S. investment bank said in a note on Tuesday.

(Reporting by Thyagaraju Adinarayan)

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