The threat of stagnation in Europe, a potential new eurozone crisis and weaker growth in the United States rattled markets for a second consecutive day, sending prices for everything from government debt to equities into convulsions worldwide.
Government borrowing costs in the troubled eurozone periphery jumped amid fears that Greece may be heading towards another bailout, rekindling unwelcome memories of the darkest days of the sovereign debt crisis.
Meanwhile, concerns that the developed world is slipping into a low-growth and deflation trap panicked investors, causing violent swings in stock and debt markets. Tighter financial regulations that have removed speculators from markets exacerbated the moves because of the lack of liquidity.
Christopher Vecchio, a currency analyst at DailyFX, said: “There have been few times over the