Global stocks at cyclical highs Tuesday 12:30 BST. Equity investors are exhibiting few signs they are preparing to "sell in May and go away." The final day of April sees global stocks at their best levels in nearly five years, while Wall Street perches at record highs, as traders infer that the world's monetary guardians will continue to intervene to support assets should economic growth wane. However, the tone is cautiously positive, rather than exuberant, with some investors seemingly reluctant to take fresh bold positions ahead of policy announcements from the US Federal Reserve and European Central Bank. The Fed is expected to keep its accommodative strategy at its two-day meeting ending on Wednesday, and some analysts think the ECB is likely to cut the eurozone's main interest rate by 25 basis points on Thursday. Barclays Capital said in a research note that expectations of low policy rates would continue amid low inflation, pushing global equities higher. Given the underlying inflation trends, we believe attention should shift to the potential for further [monetary] accommodation. The FTSE All-World equity index is up 0.2 per cent to 242.2, its best level since June 2008, after the Asia-Pacific region climbed 1 per cent and as the FTSE Eurofirst 300 sees a 0.1 per cent gain. US index futures suggest the S&P 500 will dip 3 points from its overnight closing high of 1,591. Helping to lift sentiment is an easing of eurozone debt tensions of late. In particular, investors have welcomed the formation of a coalition government for Italy, and attitudes in the market appear to have shifted away from rewarding administrations that are undertaking austerity measures to favouring those who wish to focus more immediately on promoting growth. New Italian prime minister Enrico Letta travels to Germany on Tuesday, doubtless to discuss this strategic fiscal switch with chancellor Angela Merkel. Rome's implied 10-year borrowing costs are down another 3 basis points to 3.89 per cent, the lowest since October 2010. However, the euro is giving back some of its recent advance, dipping 22 pips to $1.3075 after eurozone inflation fell to a three-year low and joblessness touched a record high. The prospect of meagre economic growth and ongoing central bank asset purchases is also continuing to suppress yields of highly-rated sovereign debt, despite the broadly optimistic mood across markets on Tuesday, which would tend to reduce demand for such perceived havens. Yields on US and German 10-year paper are down 1bp apiece to 1.65 per cent and 1.19 per cent, respectively. With the Fed using the health of the US labour market as an important guide for when it may temper its quantitative easing programme, bond investors are also perhaps wary of Friday's non-farm payrolls report. Elsewhere in currencies it is a fairly quiet session so far. The dollar index is flat as the pound holds near $1.55 and the yen is a bit firmer at Y97.53 after a flurry of data out of Japan. Hopes for an economic recovery were bolstered after Japanese manufacturing activity expanded in April at the fastest pace in just over a year, although industrial output grew more slowly than expected at 0.2 per cent in March from the previous month. Japanese shares returned after Monday's holiday to underperform regional peers, with the Nikkei 225 Stock Average slipping 0.2 per cent, following weak earnings guidance on Friday from Fanuc and Honda Motor. Mainland China markets are closed for holidays until Thursday, but Hong Kong's Hang Seng joined in the regional bounce, adding 0.7 per cent. Commodities are mixed as global demand concerns linger. Copper is off 0.1 per cent to $3.22 a pound and Brent crude is adding 3 cents to $103.84 a barrel. Gold is down $3 to $1,473 an ounce as its rebound off the two-year lows of $1,321, hit just over two weeks ago, looks to be running out of steam.