European shares extend declines on Thursday, dragging the gauge of local indices down to four-month low as Brexit concerns continue to put pressure on bullish wagers. FTSE lost 0.65%, DAX declined by 0.80%, Euro Stoxx 600 fell by 0.94%, banks and commodity producers are among the worst performers.

Swiss banks UBS and Credit Suisse tumbled by 1.5 and 2.4% on the report from the Swiss Central Bank that the companies need to attract $10.4B additional funds to meet margin requirement.
The US Dollar index fell by 0.14% after FOMC decision to leave the rate untouched, worsening the outlook on the US economy growth. The policymakers noted that they still expect two rate hikes in 2016, though most probably in the second half of 2016. The odds of a rate hike in July dropped to 1.9% then rose to 7.2%.

Fed Chair Janet Yellen noted that the British decision on the referendum will have far-reaching effects on the US and global economy, which was one of the reasons to keep the interest rate unchanged.

Japanese stocks tumbled to four-month low as the Bank of Japan refrained from further easing, keeping key rates unchanged. Policy rate remained at -0.1%, while Basic Balance Rate remained at 0.1%. The BoJ decision led a to boost in Yen growth, sending USD/JPY to 103.70 level. Nikkei 225 sunk 3.1% while broad TOPIX index lost 2.8%.

Jobless rate in Australia remained unchanged at 5.7% while employment change demonstrated positive shift by 17.9K versus 15.0K expected. The labour data failed to help the AUD, which depreciated by 0.5% against the US dollar. The Eurozone CPI report came above expectations, with 0.4% actual change vs 0.3% expected.

The GBP extends its declines against the US Dollar ahead of the Bank of England rate decision and the Brexit referendum, GBP/USD lost 0.28% at 1.4165.

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