LONDON: British shares headed for their worst day in a month on Thursday, leading Europe-wide losses as political turmoil in the US soured the "Trump trade" which has powered the FTSE to record highs.
A stronger sterling compounded losses on the mostly foreign-earning FTSE, down 1.2 percent by 0900 GMT, underperforming Europe's STOXX 600 .
The pound broke above $1.30 after retail sales beat forecasts, showing consumers in the UK are maintaining spending despite concerns about inflation pressures.
As the Trump trade unravelled, sectors that had gained the most on his election fell sharply. Construction equipment rental firm Ashtead and building materials firm CRH were among top fallers, down 4.3 and 2.7 percent.
Builders had been some of the top gainers after the election as investors bet on president Trump's promised infrastructure spending.
Mining stocks also weighed with BHP Billiton, Anglo American, Antofagasta among biggest fallers, while investors rushed to the safety of utilities and consumer goods.