Investing.com - U.S. stock markets looked set to extend losses from the prior session on Thursday, hitting fresh three-week lows as investors digest the latest monetary policy decisions from the Federal Reserve and Bank of Japan and remain on edge over the upcoming referendum on Britain's membership of the European Union.
The blue-chip Dow futures shed 52 points, or 0.3%, by 10:47GMT, or 6:47AM ET, the S&P 500 futures dipped 7 points, or 0.33%, while the tech-heavy Nasdaq 100 futures declined 17 points, or 0.38%.
U.S. stock markets suffered their fifth straight losing session on Wednesday on fears the U.K. will vote to leave the European Union in a referendum next week.
A series of recent opinion polls showed support for the "leave" camp was picking up momentum ahead of the country's June 23 referendum. A vote by Britain to leave the European Union may tip Europe back into recession, putting more pressure on the global economy.
Meanwhile, the Fed kept interest rates unchanged on Wednesday, but dialed back forecasts for how fast it will raise rates over the next couple of years, citing concerns over the economic outlook.
While the U.S. central bank retained its forecast for two rates this year, updated projections revealed that six members wanted to see one rate hike this year, compared to just one policymaker in March. Fed forecasts also show at least four fewer hikes than previously projected through 2018.
Market players are pricing in just an 8% chance for a rate hike in July, down from around 20% a day earlier, and 29% for September, according to CME Group's (NASDAQ:CME) FedWatch tool. December odds were at about 48%, compared to 59% ahead of the Fed outcome.
On the data front, initial jobless claims are due at 12:30GMT, or 8:30AM ET, as well as the consumer price index, the Philadelphia Fed survey and current account data. The National Association of Home Builders survey will be released at 14:00GMT, or 10:00AM ET.
In Europe, stocks were lower for the sixth time in seven sessions amid continued jitters over the upcoming referendum on Britain's membership of the European Union.
Earlier, Asian shares ended mostly lower, with Japan’s Nikkei 225 plunging 3% after the Bank of Japan refrained from taking further stimulus steps.
The yen rallied nearly 2% against the dollar to hit 103.96, the strongest level since August 2014. Against the euro, the yen hit 116.71, its strongest level since January 2013, while the pound slid to 146.40 yen, its lowest level since April 2013.
Elsewhere, oil prices declined for the sixth straight session to touch a four-week low as global concerns over a potential Brexit weighed on appetite for riskier assets.
Meanwhile, gold futures soared above the $1,310-level to trade at the highest since August 2014 as market players pushed back expectations for the next U.S. rate hike.
Worries about a potential exit by the U.K. from the European Union left investors scrambling for safe haven assets, sending bond yields lower yet again.
German 10-year bonds fell to an all-time low of -0.035%, U.K. 10-year bond yields also dropped to a record-low of 1.095%, while the 10-year Japanese government bond yield hit a low of -0.202%.