Turmoil across global financial markets and a spike in Greek borrowing costs yesterday reignited fears about Europe’s recovery and the structural problems left over from the eurozone debt crisis.

For the first time this year, Greece’s benchmark bond yields rose above 9 per cent as mounting political instability raised doubts about Athens’ ability to sustain its heavy debt burden. European countries hit hardest by the eurozone debt crisis also saw their borrowing costs jump at rates not seen for a year.

Concerns about low global growth kept Wall Street under pressure, but stocks rebounded and US Treasuries erased gains as James Bullard, St Louis Federal Reserve Bank president, said the central bank should consider delaying the end of its asset-purchase programme, known as quantitative easing.