Wall Street is putting its money behind Democrat Barack Obama for president, despite worries that his administration would raise taxes and take a tougher line on trade and regulation.

The signs Wall Street reads point to Democrats prevailing in the November presidential and general election as voters punish the incumbent Republican party for a flagging economy and lengthy Iraq war.

And the fact that Mr Obama began raking in a bigger share of the cash as his campaign picked up steam suggests that investors simply want to back the eventual winner.

Mr Obama has received €5 million in contributions from the securities and investment industries, according to data compiled by the Centre for Responsive Politics.

His opponent, Republican presidential candidate Arizona Senator John McCain, banked a little under €2.6 million, putting him behind fellow Republicans Rudolph Giuliani and Mitt Romney, who have long since dropped out of the race.

Overall, Democrats had garnered 57 per cent of the contributions from the securities and investment industry. If that trend continued through November, it would mark the first time since 1994 that they have drawn more Wall Street cash than Republicans in a presidential election year, according to CRP data.

Although the money flow has shifted dramatically this year, that Democrats have raised more than Republicans may say more about the nature of this race than Wall Street's allegiances. Mr Obama and Mrs Clinton needed more cash to fund their protracted battle for their party's nomination.

As of the end of last year, Mrs Clinton topped the cash list from Wall Street with €4 million. Mr Obama was third, behind Mr Giuliani, CRP data shows. Mr McCain was a distant sixth.

Investing is all about betting on what the future may hold, and presidential elections are no exception, and traders are giving the Democratic candidate an edge in November. Dublin-based Intrade, a website where contracts tied to real world events are bought and sold, gives Mr Obama a healthy advantage over Mr McCain.

The candidates

Facts about the top three candidates in the 2008 race for the White House:

Hillary Clinton
The second-term US senator from New York was the first wife of a US President to be elected to public office. As first lady, Mrs Clinton led a White House task force on expanding US health care to cover all Americans but was derailed by conservative opposition in Congress. Mrs Clinton, 60, graduated from Yale Law School, where she met her husband Bill Clinton. She would be the first woman President.

John McCain
Mr McCain, who comes from a celebrated US Navy family and turns 72 in August, would be the oldest person to assume the US presidency. He was shot down during a combat mission over Vietnam in 1967 and, during five-and-a-half years as a prisoner of war, was subjected to frequent beatings and torture. In the past 15 years, Mr McCain has been treated four times for skin cancer. First elected to the US House of Representatives in 1982, Mr McCain won the first of four Senate terms in 1986.

Barack Obama
Mr Obama gave the keynote address at the 2004 Democratic convention before being elected a US senator from Illinois. Mr Obama, 46, would be the first black president. He is known for electrifying crowds with his eloquence and a vow to change the ways of Washington. His father was Kenyan and his mother a white woman from Kansas. He is a two-time bestselling author. While attracting wide support among African Americans, Mr Obama eschewed the rhetoric of race struggle. He jumped into politics in 1996 and served in the Illinois State Senate for eight years.

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