The FTSE fell on Friday morning, pressured by mining stocks after data from China dented the demand outlook from the world's top metals consumer, with investors waiting for news on Greece's negotiations with bondholders.

The FTSE 100 <.FTSE> was off 15.02 points, or 0.3 percent, at 5,726.13 by 09:27 a.m. BT, having risen 0.7 percent on Thursday to 5,741.15, its highest close since Aug 1.

Miners <.FTNMX1770> tracked metals prices lower after manufacturing data from China showed a sluggish start to the year, although this suggested the government will keep pulling pro-growth policy levers.

Heavyweight Vodafone helped stem the FTSE 100's losses, up 1.5 percent, after an Indian court ruling in favour of the British mobile operator.

India's tax office has no jurisdiction over Vodafone's purchase of mobile assets in India, the country's Supreme Court ruled, a relief to the telecoms group that has been fighting a $2.2 billion tax bill in a long-running dispute.

India is a huge market for Vodafone. It is a market that they are likely to increase exposure to and this is certainly a positive for the company going forward, said Manoj Ladwa, senior trader at ETX Capital.

Petrofac
, meanwhile, languished near the top of the blue-chip fallers' list, off 3.9 percent, after JPMorgan cut its rating on the oil services company to neutral, saying perceived earnings risk has not been discounted.

With earnings confidence resting on revenue and the awards from which it is derived, the $8 billion of orders which we estimate are required to reach consensus forecasts for next year is starting to look aggressive, JPMorgan said in a note.

Trading volume in Petrofac was robust, at 75 percent of its 90-day daily average, against just 29 percent for the FTSE 100.

Traders said investors were looking to hedge their bets going into the weekend after four days of gains on the FTSE 100, as the outcome of talks between Greece and bondholders was uncertain.

Cash-strapped Greece resumed debt swap talks on Friday amid signs it was edging towards a deal needed to prevent a default.

After a breakdown in talks last week over the coupon, or interest payment, that Greece must offer on the swap's new bonds raised fears of a default, the two sides appeared to be moving to overcome differences.

While hopes are building that recent coordinated action by central banks and the IMF will be enough to avert an economic crisis, traders noted there were still a lot of shorts in the market, and so were divided about whether this was a short squeeze or the beginning of a more serious rally.

There is still a little bit of wood to chop for the FTSE. It is not in the clear for the topside, Phil Roberts, chief European technical strategist at Barclays Capital, said.

To say that the FTSE 100 has fully negated August's sell-off, Roberts reckoned a close above Fibonacci resistance at 5,824 and weekly Ichimoku cloud resistance at 5,856 would be necessary.

(Additional reporting by David Brett)