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Investors Get their Biden Bounce on

World stocks 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 coronaviruss economic damage.

Europes traders hoisted the FTSE, DAX and CAC 40 0.2 to 0.4 higher .EU and pushed up the euro againFRX as they also waited for the European Central Banks first policy meeting of the year.

With Wall Street .N and Asian stocks both reaching new highs overnight, MSCIs global index covering nearly 50 countries added 0.3 to its 76 surge since last years COVID crash.

Republicans in the U.S. Congress have indicated they are willing to work with Biden on his administrations top priority, a 1.9 trillion U.S. fiscalstimulus plan. Some remain opposed to the price tag, but the final amount is still expected to be worth at least 5 of U.S. gross domestic product.

Biden has got the benefit of the doubt as far as markets are concerned and has had for some time, said Shamik Dhar, chief economist at BNY Mellon investment management.

The benefit of higher stimulus is viewed as outweighing any negative impacts of higher corporate taxes and regulation. And I think they are right to think that. Monetary policy is also likely to remain loose, he said.

Bond yields barely budged, with debt markets now focusing on the ECBs meeting, which comes against a backdrop of ongoing challenges.

The bank will announce its rate decision at 1245 GMT and is widely expected to keep…

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