UPDATE 1-British mid-caps rise on hopes of Brexit deal this week

* FTSE 100 up 0.2%, FTSE 250 up 0.3%
* Domestic stocks gain on lingering Brexit deal hopes
* Gains among mid-caps limited by downbeat trading updates
* Neil Woodford's listed fund hits record low
* Indivior shines after raising FY forecast

(Adds news items, analyst comments, updates share prices)
By Shashwat Awasthi
Oct 15 (Reuters) - Britain's domestically focussed mid-cap
index advanced on Tuesday amid hopes that a Brexit deal could be
clinched this week, though gains were capped by steep falls in
the shares of a slew of companies as the latest earnings season
kicked off.
The FTSE 250 .FTMC , which had surged more than 4% last
Friday after positive Brexit signals from Ireland, added 0.3% by
0800 GMT.
JP Morgan's UK domestic plays index .JPDEUKDM , which
tracks about 30 UK stocks that make all or most of their revenue
at home, rose 1%. The index has gained more than 10% since
September.
The FTSE 100 .FTSE also inched 0.2% higher, helped by
domestic banks such as Lloyds LLOY.L , and stocks considered
most sensitive to any Brexit fallout such as housebuilders
.FTNMX3720 and consumer goods firms.
Britain and the European Union are set for crunch Brexit
talks at a summit on Thursday and Friday, with Prime Minister
Boris Johnson intent on delivering Brexit on Oct. 31 and the EU
still looking for further concessions. "Last week's observation that watching from the sidelines
could be the smartest investment strategy of the year, probably
still holds water this week," Oanda analyst Jeffrey Halley said.
Initial optimism surrounding U.S.-China trade was tempered
and traders looked for more concrete details to assess any
progress the countries had made last week to end their spat.
Any prospect of a rally among mid-caps was quelled, as
downbeat trading updates led pub operator Marston's MARS.L ,
industrial process furnace and ovens maker Vesuvius VSVS.L and
engineering group Renishaw RSW.L 8% to 10% lower.
Marston's warned on its annual profit, while Vesuvius and
Renishaw pointed to tough market conditions hitting their
financials. Indivior INDV.L , whose shares have more than halved in
value this year, jumped 12% after the drugmaker raised its
annual sales and profit view. However, Woodford Patient Capital Trust WPCT.L tumbled 7%
to a fresh record low after the corporate director of money
manager Neil Woodford's suspended LF Woodford Equity Income Fund
said the fund is to be wound up. "The career of Neil Woodford as stock-picker par excellence
has come to an ignominious end," Markets.com analyst Neil Wilson
said.
Ryan Hughes, head of active portfolios at AJ Bell, said it
was highly unlikely that Woodford would remain manager of WPCT.
Recruiter Hays HAYS.L was a bright spot, jumping 6% as
strong hiring in the U.S. and China offset a drop in the United
Kingdom.