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* FTSE 100 up 0.6%, FTMC down 0.2%

* Associated British Foods ( ASBFF ) down after Hovis takeover

approval

* Rathbones ( RTBBF ) plunges after pausing new clients onboarding

June 16 (Reuters) - London's FTSE 100 rose on Tuesday, with

financials and industrials leading gains, as easing oil prices

supported risk appetite.

Oil prices hit a three-month low, extending losses from the

previous session after the U.S. and Iran reached a preliminary

peace deal to end their conflict and reopen the Strait of Hormuz

- a key global oil shipping route.

The blue-chip FTSE 100 index advanced 0.6% to

10,490.35 points by 11:00 GMT, while the midcap FTSE 250

slipped 0.1%.

* Heavyweight banks rose 1.7%, with HSBC ( HSBC )

and Barclays ( BCS ) gaining 1.6% and 2.1%,

respectively.

* Aerospace & defence stocks led sectoral

gains with a 2.4% rise, with Rolls-Royce adding 2.5%, the top

gainer on FTSE 100. Peer BAE Systems rose 2.2%.

* Among midcap movers, Rathbones ( RTBBF ) plunged 16.6% to a

one-year low after the wealth manager said it will pause

onboarding new clients for 12 months.

* SDCL Efficiency Income Trust plunged 22% after the

investment firm proposed to wind down the business.

* SThree dropped 0.5% after the specialist

recruitment firm reported a decline in its first-half net fees

amid weak growth.

* Among deals, Associated British Foods ( ASBFF ) slipped 1.6%

after Britain's competition watchdog cleared its acquisition of

rival Hovis.