British businesses became more downbeat about the economic outlook in December, with the biggest monthly decline in confidence in more than a year, a survey showed on Thursday, adding to signs of a slowdown in the country's economy.

Japan's government on Thursday slightly raised its economic growth projections for this fiscal year from its previous estimates, as external demand is likely to more than offset weak domestic consumption, the Cabinet Office said.

U.S. consumer confidence increased to a five-month high in December, with Americans growing more optimistic about current and future business conditions as well as the labor market, which could help to underpin the economy early next year.

Asian shares fell on Thursday after Wall Street snapped a long winning streak, while Treasury yields were near five-month lows on hopes Britain's notably soft inflation reading would be echoed in looming U.S. price data.

Oil prices fell on Thursday and were on track to snap a three-day winning streak, as concerns over low demand following a surprise U.S. crude inventory build outweighed jitters over global trade disruptions due to tensions in the Middle East.

The dollar found a footing on Thursday as a sudden end to a strong rally for U.S. stocks had investors looking for safety and as an unexpected fall in British inflation hit the pound.