UK shares fell as the pound gained strength against the dollar following Donald Trump’s inauguration speech.
Concern over Mr Trump’s protectionist comments hit the US currency, and the pound hit a one-month high against the dollar, rising 0.6% to $1.2450.
As the pound rose, the stock market fell, with the FTSE 100 down 27.39 points at 7,171.05 by late morning.
A stronger pound can hurt multinational firms, as overseas profits are worth less when converted back into sterling.
The biggest faller in the FTSE 100 was bookmaker Paddy Power Betfair. Its shares dropped more than 3% after it said revenues had been affected by a run of “customer friendly” results.
The company said football results in December and Donald Trump’s surprise US election win had cost it about £40m in the final quarter of 2016.
Shares in Bovis Homes rose 3.3% following a report that a key shareholder in the housebuilder has written to rival Berkeley about the possibility of a merger. Berkeley shares were up 1.1%.
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