UPDATE 2-UK shares fall on hard Brexit fears; NMC Health tanks on short attack

* FTSE 100 up 0.1%, FTSE 250 down 1.1%
* PM Johnson rekindles hard Brexit worries
* NMC Health biggest blue-chip decliner
* Sino-U.S. trade sentiment offers some support
* Boeing suppliers, airlines slip after 737 MAX suspension

(Adds news items, updates share prices to close)
By Shashwat Awasthi and Yadarisa Shabong
Dec 17 (Reuters) - British firms more exposed to the
domestic economy took a hit on Tuesday after Prime Minister
Boris Johnson's hard line in talks with the European Union
rekindled fears of a hard Brexit, while NMC Health plunged on
Muddy Waters' short attack.
Johnson will use his control of parliament to outlaw any
extension of the Brexit transition period beyond 2020 - his
boldest move since winning a large majority in last Thursday's
election, and one that spooked financial markets. That pushed the midcap FTSE 250 .FTMC down more than 1% on
its worst day in more than two months. The index had touched
successive all-time highs in the last two sessions after
Johnson's election victory.
However, London's main index FTSE 100 .FTSE eked out a
0.1% gain, lifted by trade-sensitive stocks amid optimism around
a proper agreement between China and the United States.
Oil majors BP BP.L and Shell RDSa.L along with HSBC
HSBA.L were the biggest boost.
Weighing on the index was Unilever's ULVR.L 7% drop, its
steepest one-day decline in more than a decade, after cutting
its 2019 sales growth view.
NMC Health Plc NMC.L also capped gains after losing nearly
one-third of its value. Finablr FINF.L , which was founded and co-chaired by
Bavaguthu Raghuram Shetty - also the founder and co-chairman of
NMC Healthcare, dropped 10.8%, with traders citing a read-across
from NMC.
JPMorgan's basket of London-listed companies .JPDEUKDM
that make their cash in domestic markets dropped 2.2%, having
soared more than 9% since Friday over the election euphoria.
An index of housebuilders .FTNMX3720 shed 2.4%.
"The reality check of the possibility of a no-deal Brexit,
while still over a year away, has tempered some of the
enthusiasm from last Thursday's election result," CMC Markets
analyst Michael Hewson said.
The steepest faller among midcaps was Senior Plc SNR.L ,
which makes parts for Boeing Co's BA.N 737 MAX jets, tumbling
11% on its worst day in over three years after the U.S.
planemaker's decision to suspend production of the MAX jets.
Shares of other Boeing BA.N suppliers as well as those of
airlines also slipped, with British Airways owner IAG ICAG.L
and engine maker Rolls-Royce RR.L shedding more that 2% each.
Meanwhile, blue-chip banks Lloyds LLOY.L and RBS RBS.L
tumbled 5.9% and 3% respectively after failing to impress in the
2019 stress test, while new capital rules are expected to hit
their investor payout plans.
Petrofac PFC.L fell 6.6% after the oilfield services
provider forecast lower annual revenue.