Markets Remain In A Wait-and-see Mode Ahead Of Fed Meeting - Economic Highlights

Stocks aren't expected to do much in today's session, with pre-open sentiment indicating a flattish open. Headlines about the Scottish vote and weak data out of China are the only notable developments today, though the market's focus is firmly on this week's Fed meeting. Stocks will likely remain in a wait-and-see mode ahead of the Wednesday afternoon FOMC announcement and Janet Yellen presser.

The Scotland independence issue may have divided the Brits, but seems like a case of much ado about nothing for the rest of us. Passions run high on both sides in the debate, but I find it hard to believe the no-advocates argument that the exit of oil-rich Scotland from the British Union will be bad for Scots. Yes, oil is a depleting commodity and the North Sea producing basin is a mature province that is past its prime. But they will be a strong contender to join the EU eventually and the argument that it encourage secessionist sentiment in Spain, Italy and other countries is a non-starter in my thinking.

Why should the Basques be tied to the Spanish union against their will when they could be equals of the Spaniards in the broader Euro-zone currency union? I may come across as supportive of the Scottish independence move here, but that's solely because I am such a diehard Braveheart fan. Had it not been for William Wallace, I will speaking for the rest of the world that it didn't matter which way the Scots vote this Thursday.

More important to the global economic outlook than Scottish independence is to handicap what's happening with the Chinese economy, particularly following the weekend release of weaker-than-expected August industrial production numbers that fell to their lowest levels in recent years. Other recent data points like fixed investments, retail sales and the real estate markets have been showing signs of deceleration as well, raising fresh doubts about China's growth outlook.

What all of this shows is that the government's mini-stimulus package earlier this year may not have had as much lasting effect as prior cycles and that they will need to do more to meet existing GDP growth targets. That said, the Chinese authorities have a lot more elements at their disposal than their Western counterparts. With inflation seemingly well controlled, the authorities can easily issue directives to government-controlled companies that will have beneficial knock-on effects on the broader economy. But in the absence of such fresh directives or outright monetary or fiscal initiatives, growth estimates will need to come down.

In corporate news, Apple's AAPL new iPhones reportedly met record demand in its first weekend, increasing the odds of long waiting periods for many customers and a positive outlook for its shareholders. Another tech item in hot demand is the coming Alibaba IPO, with heightened investor interest reportedly prompting the company and its underwriters to reportedly consider raising the price range from the current $60 to $66 per share range.

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