By Riva Gold 

Global stocks held on to recent gains Thursday, supported by a firmer trend on Wall Street and an extended stimulus program from the European Central Bank.

The Stoxx Europe 600 climbed 0.6% after climbing for three days, while Germany's DAX rose 0.4% after closing at its highest level this year.

Futures suggested U.S. stocks would add to Wednesday's gains, after major bourses closed at fresh records in their steepest best day since the presidential election.

Investors' focus on Thursday turned to the European Central Bank, which extended its bond-buying program for nine months to the end of 2017.

The bank is running out of bonds to buy, but the bank opted to maintain its monthly purchase volume at 80 billion euros ($86.2 billion) until March 2017 as planned, but will reduce it to EUR60 billion as of April. It kept all its interest rates unchanged.

Investors sold German bunds and bought the euro in morning trading, but moves were largely muted. The yield on the 10-year German government bond edged up to 0.370% from 0.344% on Wednesday.

Recent comments from ECB officials have emphasized the importance of preserving stimulus, a message that bond investors appear to have taken to heart. Riskier European debt and Italian debt have rallied this week despite the concerns emanating from the Italian referendum, a move some attribute to expectations for an extension of quantitative easing.

"It's quite dangerous to rock the boat this month, given what's happened in Italy and what's going on with the banks," said Dominic White, chief economist at Absolute Strategy Research.

Italian Prime Minister Matteo Renzi formally resigned on Wednesday, paving the way for a rapid change of government. Italian bank shares continued to climb Thursday but remain down over 40% so far this year.

The euro was last up 0.1% against the dollar at $1.077 around a three-week high, after rising 1.2% so far this week, amid concerns Mr. Draghi could hint in this direction.

"December of last year still haunts us all, when the ECB cut rates and eased policy and the euro still went higher," Mr. Rochester said. He expects the euro reaction to be more muted this time, with positioning less extreme ahead of the meeting and much less at stake in terms of policy.

The moves also come amid a global selloff in long-dated government bonds on expectations that U.S. policy will be reflationary. The yield on the 10-year U.S. Treasury note was last at 2.398% from 2.347% on Wednesday.

Investors have bet that the Trump administration will bring about tax cuts, deregulation and fiscal stimulus, supporting growth and inflation in the world's largest economy and buoying U.S. stocks.

Earlier, markets in Asia closed higher after a rally on Wall Street sent both the S&P 500 and Dow Jones Industrial Average to record highs.

"The promise of fiscal policy is certainly encouraging. but we have to discern the difference between posturing and policy from our president-elect," said Eric Wiegand, portfolio manager at U.S. Bank Wealth Management. "Tax policy and trade policy are very big issues for us, and we're anxious to get a sense of actual policy."

Health care was the only S&P 500 sector to decline Wednesday, while Pfizer Inc., Johnson & Johnson and Merck & Co. were the only three stocks in the Dow to lose ground, following comments on drug pricing from President-elect Donald Trump.

Those moves were echoed in Europe on Thursday, with the health care sector down 0.4% even as wider markets advanced.

Earlier, Japan's Nikkei Stock Average rose 1.5% on Thursday, while Australian stocks added 1.2%.

Markets in Hong Kong added 0.3% while Shanghai stocks fell 0.2% with sentiment subdued in Chinese markets by authorities' increased scrutiny of aggressive stock purchases by some insurance companies.

--Tom Fairless and Kenan Machado contributed to this article.

Write to Riva Gold at riva.gold@wsj.com

(END) Dow Jones Newswires

December 08, 2016 08:13 ET (13:13 GMT)