The situation in Saudi Arabia and focus on the Fed has took the spotlight away from China's economic worries to start the week

China

I still don't think markets are paying much attention to the message emanating from China to start the new week, and that may be a sign of complacency.

Industrial production slowed to its weakest in 17 ½ years while retail sales slumped more than expected and the PBOC is still showing no signs of easing its lending rates just yet - as evident by today's MLF operations.

Prospects of a trade deal may sound attractive for risk sentiment but it isn't going to be a massive game changer to the slowing Chinese economy in my view. Domestic demand is weakening and that will continue to eat away at global economic growth.

Markets may be a bit distracted for the time being amid oil news, central bank focus, and hopeful optimism surrounding trade talks. But don't expect that to stay the course for too long. The longer the ramifications of the above go unnoticed, the greater the hit it will have on markets when reality snaps back in.