M&S and Tesco shares have been hit by heavy selling during another bleak session for UK-focused assets. Sterling weakened to its lowest level in over a year and the FTSE 250 index lost more ground after yesterday’s 2% slide.

Eva Sun-Wai, a fund manager at M&G Investments, told Bloomberg Radio that the drop for the pound even as gilt yields rise could be interpreted as a sign of capital flight, as normally higher returns on bonds would make a currency more attractive.

U.K. bond prices, stocks and the British pound slid on Wednesday after a rout sparked by hot U.S. economic data rippled through gl