World markets were cautious Tuesday ahead of tomorrow’s meeting by the Federal Reserve. With the International Monetary Fund revising its US growth forecast downwards from 2.7 to 2 per cent, it is expected that the Fed Open Market Committee will follow suit. Some mergers and acquisitions in Europe boosted shares there this morning, while Asian stocks were still restrained. Wall Street is expected to open slightly up.The continuing conflict in Iraq is being watched closely, especially with the US and Iran considering talks; the US embassy in Tehran is to reopen after more than two years. Read the full story.