(In Feb. 12 item, corrects quote in last paragraph to say
"company voluntary arrangement", not "credit valuation
    * FTSE 100 inches up 0.1 pct, European stocks up 0.8 pct
    * FTSE 250 erases gains, down 0.1 percent
    * Plus500 slumps after profit warning, drags down rival IG
    * Debenhams soars on additional funding

    By Shashwat Awasthi
    Feb 12 (Reuters) - UK shares lagged their euro-zone peers on
Tuesday as growing risks of a disorderly Brexit rattled
investors, while poor results from tour operator TUI and a
profit warning from online trading platform Plus500 sapped
appetite for stocks.
    The mood soured on the main indices in choppy afternoon
trade as Prime Minister Theresa May urged lawmakers to back her
Brexit deal and Bank of England Governor Mark Carney warned
again of the economic damage if Britain leaves the EU without a
deal.  urn:newsml:reuters.com:*:nL5N207574
    While the speeches did not contain any news, the comments
reinforced concerns about the protracted deadlock between
Parliament and Brussels.
    The FTSE 100  .FTSE , which makes 70 percent of its income
overseas, closed up 0.1 percent, after briefly falling into
negative territory as sterling recouped some losses during May's
speech. The currency hit a three-week low earlier in the day. 
    Investors were tense ahead of Thursday, when parliament will
debate Brexit with no date yet set for a further vote on May's
    Some of the biggest losers were companies exposed to the
domestic economy, such as pubs, supermarkets, utilities and
housebuilders, while gains were in oil majors, miners and
multinational banks.
    The domestically focused FTSE 250  .FTMC  ended down 0.1
percent as a plunge in Plus500  PLUSP.L  shares accounted for
almost all the index's 31-point drop.
    Optimism across euro zone markets about prospects for
U.S.-China trade talks this week and a deal to avoid a U.S.
government shutdown did little to help UK stocks, which are less
sensitive to the vagaries of trade tensions, traders
said. urn:newsml:reuters.com:*:nL3N20614C  urn:newsml:reuters.com:*:nL1N2060IA
    "That the FTSE doesn’t need to make up the same kind of
recent losses as its UK and U.S. peers likely has informed its
Tuesday performance," said Spreadex analyst Connor Campbell.
    "The Parliamentary speech and May's sparring with
(Opposition Leader Jeremy) Corbyn show nothing's changed," said
Mike van Dulken, head of research at Accendo Markets.
    "It all comes down to what she can convince Parliament to
agree to. She has a tough sell at home and (is) hoping that
Europe blinks first."
    A disruptive no-deal Brexit remained the default outcome.
    "There is continued optimism that some sort of a deal will
be reached even though we have no concrete reason to believe
that is going to be the case," said CMC Markets analyst David
    Investors were also bracing for more political turmoil after
The Sun reported that May is preparing to resign this summer
shortly after delivering Brexit, which could trigger a general
election. https://bit.ly/2BwWkzr
    A standout faller on the day was Plus500  PLUSP.L , which
lost nearly a third of its value, after the online trading
platform blamed a regulatory crackdown for its profit and
revenue warning.  urn:newsml:reuters.com:*:nL3N2072F2
    The stock slumped 30 percent on its worst day in more than
three-and-a-half years, and dragged rival IG Group  IGG.L  down
4.3 percent.
    Dragging the FTSE 100 down was tour operator TUI  TUIT.L 
 TUIGn.DE , which has slumped since a profit warning last week,
tumbling 7.5 percent to its lowest since July 2016 as its
first-quarter loss widened.  urn:newsml:reuters.com:*:nL9N1Y105P    
    Travel sector peers easyJet  EZJ.L  and British Airways
owner IAG  ICAG.L  also fell 1.7 percent each, while Thomas Cook
 TCG.L  lost 4.9 percent.
    Housebuilders Barratt Development  BDEV.L , Persimmon
 PSN.L , Taylor Wimpey  TW.L , and Berkeley  BKGH.L  fell 1.7 to
2.4 percent as investors shed stocks seen as vulnerable to a
no-deal Brexit.
    Small-cap retailer Debenhams  DEB.L  shot up 28 percent to
its best day on record after it secured additional funding from
lenders as it struggles to find a longer-term solution to its
financial woes.  urn:newsml:reuters.com:*:nL3N2072GI
    "While this (refinancing) takes away the immediate pressure
and provides a short respite, we believe Debenhams is likely to
move forward with a CVA (company voluntary arrangement) in order
to reduce its lease commitments and store numbers," said John
Stevenson, retail analyst at Peel Hunt.

PLUSP vs IG vs CMC    https://tmsnrt.rs/2TL77ND
 (Reporting by Shashwat Awasthi and Muvija M, additional
reporting by Tanishaa Nadkar in Bengaluru; Editing by Josephine
Mason and Susan Fenton)
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