China should remain the key focus for markets this week, with the release of manufacturing activity data as well as the annual meeting of the National People's Congress which could shed some light on economic policy.
But events in Ukraine will dominate as well, as a stand-off between Ukraine and Russia threatens to escalate into conflict.
Ukraine mobilized on Sunday for war and called up its reserves, after Russian President Vladimir Putin threatened to invade in the biggest confrontation between Moscow and the West since the Cold War.
"Markets have a lot to digest this morning; a geopolitical crisis in Ukraine, China's PMI index beating expectations (which was a surprise) and the start of central bank week. But the biggest talking point is the developments out of Crimea," Evan Lucas, market strategist with IG wrote in a note on Monday.
Lucas added that while investor response to the Ukrainian developments is hard to quantify, markets were mixed during Russia's invasion of Georgia back in 2008.
"During the five-day (Russo-Georgian) war, reactions in typical markets were mixed; gold actually contracted over the five days, oil traded sideways, but EUR/USD fell through the floor from $1.532 to $1.493 on the opening day and dropped for the preceding four," Lucas wrote.
"The major difference between the five-day war and the Crimea situations is the cultural and political divides are larger and more pronounced, with greater possibilities for flare ups and conflict over the longer term," he added.