Stock prices around the world have fallen sharply after a further rise of interest rates on government bonds of financially-stricken euro zone nations.

The interest rate on Italian ten-year bonds fluctuated around seven percent on Thursday while the interest rate on Spain's government bonds surpassed seven percent to post a record high. France, on its part, saw the interest on some of its government bonds double compared that of Germany.

Amid rising concerns over bonds, U.S. stock prices saw a decline for the second straight day on Thursday while key European stock prices fell more than one percent.

Meanwhile, uncertainties are mounting on Wall Street as Germany has expressed strong opposition to use the European Central Bank as a backstop against the euro zone debt crisis.