UPDATE 2-Defensive stocks buoy FTSE 100 before U.S.-China trade deal

* FTSE 100 up 0.3%, FTSE 250 down 0.2%

* U.S. tariffs on China to remain in place for now

* Tullow Oil drags midcaps lower

* Banks drop on rate cut bets
(Adds company news items, updates to closing prices)

By Shashwat Awasthi and Muvija M

Jan 15 (Reuters) - London's main share index rose slightly
on Wednesday, hours before the sealing of an initial U.S.-China
trade deal, though sentiment was tempered when Washington said
tariffs on Chinese goods would not be rolled back immediately.

The FTSE 100 rose 0.3% on a third day of gains,
supported by a host of so-called defensive stocks including
pharmaceutical giants AstraZeneca and GlaxoSmithKline
, which rose nearly 2%, and consumer goods companies.

Investors tend to turn to these sectors at times of
macroeconomic uncertainty.

The FTSE 250 ended 0.2% lower, with a 16% plunge in
Tullow Oil weighing the most. Tullow said it would take
a $1.5 billion writedown after cutting its long-term oil price
assumptions.

Investors betting on a quick de-escalation of Sino-American
tensions were dealt a blow when U.S. Treasury Secretary Steven
Mnuchin said tariffs on Chinese goods would not be repealed
until the completion of a Phase 2 agreement.

"Strategic competition between the U.S. and China,
especially in tech, is likely to persist despite a limited
'Phase 1' trade deal," BlackRock analysts wrote in their weekly
note.

"The U.S.-China trade conflict – 2019's dominant
geopolitical risk – has paused, yet we expect enduring strategic
rivalry between the two countries."

Banks suffered across the board as weak inflation data
further spurred hopes that the Bank of England will cut interest
rates in its January meeting. Low interest rates squeeze a
lender's margins.

Royal Bank of Scotland, which also had its rating
downgraded by Barclays, led the sub-index down 1%
to a one-month low with a 2.5% share price fall.

Keeping a lid on losses on the midcap bourse, Provident
Financial jumped 7% after its key credit card business
enjoyed a better-than-expected fourth quarter and Hochschild
Mining climbed 3% on better-than-expected 2019
production.

Among smaller stocks, fast fashion retailer QUIZ
tanked nearly 20% on its worst day since June, as it pointed to
poor trading over the key Christmas period.
(Reporting by Shashwat Awasthi and Muvija M in Bengaluru,
Editing by Sherry Jacob-Phillips and Shailesh Kuber)