Equity, money markets in the US remain polarised, says Chris Wood

Another key development in the US, that the global equity markets would eye over the next few months, is how the political landscape shapes up ahead of the presidential elections

Equity and money markets in the United States (US) remain polarised and are betting on two different outcomes in the months ahead, wrote Christopher Wood, global head of equity strategy at Jefferies in his latest note to investors, GREED & fear.

While the US stock market, he wrote, is priced for an idealised soft landing of the economy, the money markets are priced for a degree of monetary easing, which only seems likely in the event of a recession.

"The Fed funds futures are now discounting 144 basis point (bp) of rate cuts this year, though down from