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    * BoE policy decision due later this week
    * BATS slumps on plans to cut FY22 guidance amid Russia exit
    * Rio Tinto down on proposal to buy 49% of Turquoise Hill 
    * FTSE 100 up 0.5%, FTSE 250 adds 1.3%

 
    By Amal S and Bansari Mayur Kamdar
    March 14 (Reuters) - UK shares rose on Monday as hopes for
progress in Russia-Ukraine peace talks lifted sentiment
globally, with financials leading the advance on FTSE 100, while
Rio Tinto fell after proposing to buy the remaining of Canada's
Turquoise Hill.
    The blue-chip FTSE 100 index         climbed 0.5% in
volatile trade, with banks                and insurers
               leading the gains.
    "If there is a ceasefire, that takes some heat out of
commodities and fears of inflation or stagflation, that would be
seen as a positive for economy and banks will be seen as one way
of playing that after a weak spell for their share prices which
has left them trading at discounts to book value," said AJ Bell
investment director Russ Mould. 
    However, the advance was limited as energy               
and mining                shares fell 1.6% and 5.0%,
respectively, tracking weaker commodity prices.             
    "Some of it is profit-taking or people running for cover if
they've taken more speculative position in the commodity space
where you've seen some very, very sharp rises," said Mould.
    Both Russia and Ukraine gave their most upbeat assessment
yet of prospects for talks, with a Russian delegate quoted as
saying there could soon be draft agreements, boosting investors'
appetite for riskier assets like stocks.            
    Yields on UK bonds of both longer-             and
shorter-dated            rebounded after two straight sessions
of falls, as traders braced for a likely third rate rise in a
row by the Bank of England this week to tame the dramatic surge
in inflation.             
    Index provider FTSE Russell said it would delete
Russia-focused Evraz         , Polymetal International
         , Petropavlovsk         and Raven Property Group
        after trading in their shares was curtailed by a
pull-back from the country's stock market by leading brokerages.
              
    The domestically focussed mid-cap index         advanced
1.3% to extend the previous week's gains and outperform the
benchmark index.
    Joining the corporate exodus from Russia, British American
Tobacco Plc          said on Friday it would exit Russia and cut
its fiscal 2022 guidance as a result. Shares of the company were
down 1.4%.             
    Miner Rio Tinto         fell 4.8% after the miner proposed
to buy 49% of Canada's Turquoise Hill          it does not
already own for about $2.7 billion.             

 (Reporting by Amal S and Bansari Mayur Kamdar in Bengaluru;
Editing by Subhranshu Sahu and Lisa Shumaker)