* FTSE 100 closes down 0.6 percent
* Banks and energy shares lead declines
* Utilities gain as investors back safe stocks (ADVISORY- Follow European and UK stock markets in real time onthe Reuters Live Markets blog on Eikon, see cpurl://apps.cp./cms/?pageId=livemarkets)
By Peter Hobson
LONDON, Nov 28 (Reuters) - Britain's top share index slippedon Monday as a rally sparked by Donald Trump's election as U.S.president appeared to falter with financial and energy sharesshowing the biggest declines, though gold miners and utilitiesrose.
The blue-chip FTSE 100 index closed down 0.6percent. The benchmark index is still up about 8 percent so farthis year even after falling around 5 percent since its Octoberpeak.
The UK banking index fell 1.3 percent, draggeddown by worries over the impact on Italian banks from areferendum vote on constitutional reforms on Dec. 4 that couldtopple Matteo Renzi's reformist government.
Lloyds Banking Group, Barclays and RoyalBank of Scotland fell by 1.5 to 2.6 percent, as Italianbanks sank to an 8-week low.
Shares in energy companies also fell despite crude pricesrising more than 2 percent in volatile trading. Brent crude swung from loss to gain as the market wrestled with theshaky prospect of major producers being able to agree outputcuts at a meeting on Wednesday.
Shares in BP, Royal Dutch Shell and TullowOil 1.4 to 2.3 percent, with the wider UK oil and gasindex down 1.2 percent.
Among mid-caps, shares in Man Group fell 4.6 percentafter Exane downgraded its rating on the world's biggest listedhedge fund to "neutral", and rival Aberdeen Asset Management also fell almost 4 percent after profits fell andoutflows continued.
Consumer-facing businesses slipped, with traders citingearly indications that retail sales during last week's BlackFriday promotion had disappointed and consumer spending couldweaken into next year.
Retailers Next and Marks & Spencer fell 2.6and 1.6 percent respectively, while broadband and pay TVproviders BT and Sky fell 2.4 and 2.3 percent.
"The outlook for the UK continues to remain fragile anddomestic-focused high street retail names will see pressure onmargin and growth," said Atif Latif, director at GuardianStockbrokers, said.
The move in the blue chip FTSE 100 index echoed falls inEurope and on Wall Street. U.S. stocks pulled back from lastweek's record highs, suggesting three weeks of rapid gains on Donald Trump's infrastructure spending plans may be over.
The uncertainty surrounding stocks and oil prices liftedutilities, seen as relatively safe due to their steady incomeand regular dividends, said Michael Hewson, analyst at CMCMarkets.
Centrica closed up 2.6 percent, SSE up 2.1percent, and United Utilities gained 1.5 percent.
Gold miners also benefited from a more than 1 percent risein gold prices, which recovered from 9-1/2 month lows as thedollar extended losses after touching a near 14-year high lastweek.
Shares in Randgold Resources, Polymetal and Fresnillo rose between 3.2 percent and 4.3 percent. (Additional reporting by Alistair Smout; Editing by RuthPitchford)
