(Adds U.S. market open; changes byline, dateline; previous
LONDON)
* Graphic: Global asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
By Herbert Lash
NEW YORK, Jan 21 (Reuters) - World stock markets racked up
record highs on Thursday and the dollar fell as investors bet
major stimulus from new U.S. President Joe Biden and unswerving
global central bank support would cushion the coronavirus'
damage and bolster economic growth.
In Europe, the pan-European STOXX 600 index .STOXX closed
0.17% higher, while the FTSE .FTSE slid 0.4% and the DAX
.GDAXI slipped 0.11%.
The euro edged up EUR= /FRX as the European Central
Bank's first policy meeting of the year brought no change to its
supportive policies.
Asian stocks reached new highs overnight, Wall Street rose
further and MSCI's global index of stock performance across 50
countries .MIWD00000PUS gained 0.3%.
The three major indexes on Wall Street trended higher in
early trade, though declining shares outnumbered gainers by a
1.5-to-1 ratio.
This year's early trend of investors piling into cyclical
stocks has reverted to buying of large-cap growth stocks that
led last year's rally post-pandemic, said Tim Ghriskey, chief
investment strategist at Inverness Counsel in New York.
"It's a reverse of what's happened year-to-date through
Tuesday. Today and yesterday were decidedly a growth market,
especially big-cap tech plus," Ghriskey said.
"There's concern about distribution of the vaccine."
The Dow Jones Industrial Average .DJI fell 35.59 points,
or 0.11%, to 31,152.79. The S&P 500 .SPX lost 1.32 points, or
0.03%, to 3,850.53 and the Nasdaq Composite .IXIC added 49.99
points, or 0.37%, to 13,507.24.
The pan-European STOXX 600 index .STOXX rose 0.16% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.1%.
Treasury yields were mostly higher and the yield curve
steepened after U.S. labor market data showed new claims for
jobless benefits declined modestly last week.
The data alleviated concerns that the U.S. labor market
could deteriorate further, said Guy LeBas, chief fixed income
strategist at Janney Capital Management in Philadelphia.
"Having a flat or slightly improved data point for the
second week of January helps argue that the trend is not toward
rising claims," LeBas said.
Euro zone bond yields jumped to one-week highs, a move
analysts attributed largely to the ECB saying it may not use the
firepower of its bond purchasing program in full.
The ECB kept its deposit rate unchanged at -0.5% and
maintained the overall quota for bond purchases at 1.85 trillion
euros, as expected.
The dollar index =USD fell 0.265%, with the euro EUR= up
0.38% to $1.215, amid expectations of a Biden stimulus push and
after the Bank of Japan left its policies unchanged overnight.
The benchmark 10-year Treasury note US10YT=RR fell almost
1 basis point to push its yield up to 1.099%.
In commodity markets, oil prices eased on an unexpected rise
in U.S. crude stockpiles, though hopes for an economic revival
kept losses in check.
U.S. crude CLc1 fell 0.21% to $53.20 per barrel and Brent
LCOc1 was down 0.12% at $56.01 a barrel.
Industrial metals such as copper, nickel and iron ore all
rose, while spot gold XAU= slid 0.4% to $1,864.04 per ounce.
GOL/
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Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country World Index Market Cap http://tmsnrt.rs/2EmTD6j
Tech's dominance https://tmsnrt.rs/2LLgfmG
Political risk forecast https://tmsnrt.rs/390f6Ah
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