Morgan Stanley: Mildly weak nonfarm payroll data this week could increase the probability of further Fed rate cuts.

According to Odaily Planet Daily, Morgan Stanley strategist Michael Wilson believes that if this week's US employment data shows mild weakness, it could increase the probability of further interest rate cuts by the Federal Reserve. After three consecutive rate cuts by the Fed, investors are looking for clues in this data to determine whether the Fed is about to end its monetary easing cycle or needs to take more aggressive action. This week's US economic data will largely fill the data gap caused by the government shutdown. The delayed monthly employment data will be released on Tuesday, with economists expecting 50,000 new jobs and an unemployment rate of 4.5%, consistent with a weak but not rapidly deteriorating labor market. Consumer inflation data will be released on Thursday.