* Oil prices head for sixth straight session of losses
* Banks lead European stocks lower as Brexit worries
dominate
* S&P, Dow poised for worst losing streak since August
* Yen spikes after BOJ holds policy
* U.S. benchmark yields hit 4-year low
(Updates with early U.S. market activity, changes dateline,
previous LONDON)
By Caroline Valetkevitch
NEW YORK, June 16 (Reuters) - The yen jumped to its highest
level in more than three years against the euro on Thursday
after the Bank of Japan refrained from further stimulus, while
oil prices and bond yields tumbled ahead of next week's British
vote on EU membership.
The drop in oil dragged down energy shares, and U.S. stocks
were poised for their worst losing streak since August. U.S.
Treasury yields fell to their lowest level in four years.
A vote by Britain to leave the European Union could
undermine decades of European integration as well as create
further global economic uncertainty.
"We get these reminders that while things are growing at a
slow rate there are potential pitfalls ... reinforcing Fed
commentary that the recovery is still somewhat tenuous," said
Jeff Morris, Head of U.S. Equities at Standard Life (LON:SL) Investments
in Boston.
The U.S. central bank's outlook along with concerns over
Brexit, as it is called, helped to drive investors toward less
risky assets.
The Federal Reserve on Wednesday lowered its economic growth
forecast for this year and the next, while worries that Britain,
the world's fifth-largest economy, will vote to quit the EU on
June 23 continued to rattle markets.
Sterling GBPEUR= hit a two-month low against the euro,
while the euro dropped 2.9 percent against the yen to 115.88
EURJPY= , after earlier hitting a 3-1/2-year trough at 115.84
yen.
"Central banks have been throwing a kitchen sink at the
economy over the past seven years and now have no way to combat
the weakness," said Matthew Tuttle, chief investment officer of
Tuttle Tactical Management in Connecticut.
In equity markets, the Dow Jones industrial average .DJI
was down 102.62 points, or 0.58 percent, to 17,537.55, the S&P
500 .SPX lost 14.89 points, or 0.72 percent, to 2,056.61 and
the Nasdaq Composite .IXIC dropped 45.81 points, or 0.95
percent, to 4,789.13.
The European FTSEurofirst 300 index .FTEU3 fell 0.4
percent, with shares of UBS UBSG.S and Credit Suisse CSGN.S
down after the Swiss National bank said both banks were likely
to need to raise an extra 10 billion Swiss francs to meet new
leverage requirements.
Gold rallied to a two-year peak, and spot gold XAU= was up
1.4 percent at $1,308.91 an ounce.
Benchmark 10-year Treasury US10YT=RR notes rose 18/32 in
price to yield 1.532 percent.
Data showing U.S. crude stockpiles fell less than expected,
along with concerns over Britain's future, weighed on oil
prices.
Brent crude futures LCOc1 were down $1.63 at $47.34, while
U.S. crude futures CLc1 were down $1.75 at $46.26.