LONDON: The exporter-heavy FTSE 100 index reversed earlier declines to jump more than 1% on Monday, boosted by a weakening pound and a global rally in equities powered by hopes of more stimulus.

The blue-chip FTSE 100 closed 1.3% higher after falling as much as 0.6%, while the British mid-cap index rose 0.7%.

Oil & gas stocks jumped 2.1%, with heavyweight BP gaining 3.3% as it agreed to sell its global petrochemicals business to billionaire Jim Ratcliffe's Ineos for $5 billion.

UK stocks have staged a strong rebound in the past three months following a coronavirus-driven crash in March, and are on track for one of their best quarters since the global financial crisis, boosted in part by historic global stimulus.

But the pace of gains has slowed this month, with the FTSE 100 still about 20% away from its January peak as more data underscored the bruising impact of lockdowns, with British private-sector economic activity falling at record pace in the three months to June.

Among other stocks, Energean Oil & Gas jumped 22% to the top of the FTSE 250 as it reduced its capital expenditure forecast for 2020 to between $760 million and $780 million from $840 million.