Stocks finished mixed Monday after wavering in a tight range for most of the session as ongoing worries over Spain overshadowed results of the weekend's Greek elections and as investors hesitated to jump in ahead of the FOMC meeting.
The Reserve Bank of Australia (RBA) is widely expected to lower interest rates by 25 basis points to 3.50 percent at its next meeting Tuesday, however, slowing housing and retail sectors could push the central bank into a more aggressive rate cutting cycle with the market expecting up to 165 basis points in cuts over the year.
Investors could revolt at a moment's notice against high government deficit levels, jeopardizing chances at a recovery and potentially sending interest rates soaring, former Federal Reserve Chairman Alan Greenspan told CNBC.