(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. 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/
Full coverage for Eikon readers of the U.S. presidential transition: https://emea1.apps.cp.thomsonreuters.com/cms/?navid=20856 For multimedia coverage please open https://www.reuters.com/world/us in a separate browser
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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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