Ratings agencies were today poised ready to downgrade Greece’s sovereign debt causing European markets to tumble.

European equity markets fell by 1.5 per cent this afternoon (Thursday 25 February) as both Standard and Poor's and Fitch confirmed that there is a chance they will downgrade Greece's sovereign debt rating in the next month unless conditions improve.

Joshua Raymond, market strategist at City Index, said, ‘The screens have filled with red ever since 10am this morning with equity markets heading lower and the heavyweight mining and energy sectors seeing significant falls.’