UPDATE 1-Brexit jitters weigh on domestic firms; exporters lift FTSE

UK shares more exposed to the domestic economy eased further on Wednesday after their post-election rally, hurt by renewed worries of a chaotic Brexit after Britain set a hard deadline of December 2020 to reach a new trade deal with the European Union. The FTSE 250 was down 0.5% as of 0943 GMT, retreating further away from an all-time high hit on Monday after Prime Minister Boris Johnson stormed to a victory in the general election last week.

Though a majority for Johnson's Conservative Party was seen as bringing more clarity over Brexit, his latest stance on negotiating a free trade deal with the EU has again cast doubts over how Britain's departure process will play out. The FTSE 100 added 0.2%, as exporter stocks such as BAT and GlaxoSmithKline benefited from a weaker pound and offset losses in shares of domestically-exposed housebuilders and banks.

Lawmakers will vote on Johnson's withdrawal agreement on Friday. As per the latest amendment over the transition period, Britain has less than 11 months to iron out a deal with the European bloc. "The amendment came as quite a shock to traders... This doesn't leave very long to get a deal over the line unless the government is eyeing an off the rack option," OANDA analyst Craig Erlam said.

The blue-chip index, on track for its sixth straight session of gains, was also supported by a 3% rise in Pearson Plc after it said it would exit the consumer publishing space and that its CEO would leave. "The latest profit warning impacted faith in management's ability to predict trends or give guidance for the business, so this may be the start of a rebuilding and transformation process," a Liberum note said.

NMC Healthcare rebounded slightly, a day after a short attack from Muddy Waters wiped off nearly a third of its market value, leading to its worst day on record. The UAE-based group stood by its 2019 and 2020 targets, sending its stock up as much as 10%.

Mid-cap payments company Finablr, which is co-chaired by the founder and co-chairman of NMC, gave up 2% despite affirming its outlook. Its shares had slipped more than 10% in the previous session. AIM-listed Staffline Group Plc plunged nearly 40% to its lowest level in more than a decade, after the recruiter issued its third profit warning this year.