The export-oriented FTSE 100 was off 0.6% after jumping 2.6% on Tuesday, while the more domestically oriented FTSE 250 was down 0.7%, as of 0729 GMT.

Weighing the most on the FTSE 100 was the healthcare sector, which dropped 1.2%, while the financial sector slipped 1%.

Retailers fell 1.2% after Tesco trimmed its annual profit outlook citing macro uncertainties. Recent data showed confidence levels among consumers sank to a record low as they struggle with the cost-of-living crisis.

Still, shares of Tesco rose 0.5% after Britain's largest retailer upgraded its outlook for full-year retail free cash flow.

UK as well as broader European shares sat out a rally in global markets. Asian shares took heart from a strong rally in Wall Street overnight as investors bet that global interest rate hikes might become less aggressive.

Composite and sector-wise PMI data for the UK economy due at 0830 GMT is not expected to change for the month of September, according to Reuters poll.

After a week of volatility that saw the reversal of controversial tax cuts proposed by the government, British Prime Minister Liz Truss will argue on Wednesday that disruption sparked by her economic plans will be worth it in the long run.

(Reporting by Johann M Cherian in Bengaluru; Editing by Sherry Jacob-Phillips)