The FTSE 100 slipped from two-month peaks, as Vodafone's disappointing outlook on Tuesday added to the gloom of weaker-than-expected employment data.
The blue-chip index was down 0.1% by 0823 GMT after hitting a two-month peak last week.
Vodafone (VOD.L) tumbled 4.8% after the mobile phone operator cut its full-year free cash flow forecast, reflecting a worsening global macroeconomic climate and higher energy costs.
Data earlier showed Britain's unemployment rate unexpectedly rose and vacancies fell for the fifth report in a row as employers worried about the outlook for the economy ahead of a tough government budget plan later this week.
However, the pound rallied against a weakening dollar amid growing expectations that the U.S. Federal Reserve will slow its pace of interest rate hikes.
The domestically focused FTSE 250 midcap index (.FTMC) also slipped 0.1%, with Ninety One (N91.L) dropping 5.9% after the investment manager said its half-year assets under management fell by 8%. BAE Systems (BAES.L) jumped 2.9% after Prime Minister Rishi Sunak awarded a 4.2 billion pound ($4.94 billion) contract to build five ships for the Royal Navy.
