The commodity-heavy FTSE 100 index was down 0.6%, with oil heavyweights BP and Royal Dutch Shell being the biggest drags on the index.
Bank stocks, including HSBC Holdings, Barclays Plc , and Lloyds Banking Group, were also among the biggest laggards, falling between 0.7% and 1.1%.
Britain’s jobless rate unexpectedly fell to 5.0% in the three months to January, when the country entered a new COVID-19 lockdown, official figures showed, missing forecasts of a rise to 5.2% in a Reuters poll.
The domestically focused mid-cap FTSE 250 index fell 0.3%, hit by losses in industrials stocks.
AstraZeneca Plc fell 1.0%, after a U.S. health agency said the drugmaker may have provided an incomplete view of efficacy data on its COVID-19 vaccine from a large scale trial in the United States.
Bucking the broader subdued sentiment, Cineworld rose 4.4% after it said it will re-open U.S. theatres in April and its UK halls a month after, in time to screen big-budget movies including “Godzilla vs. Kong”, after prolonged shutdowns due to the COVID-19 crisis. Reporting by Shivani Kumaresan in Bengaluru; Editing by Rashmi Aich