Financial stocks were helped by a jump in HSBC shares after it reported results.

The blue chip FTSE 100 index <.FTSE>, up nearly 8 percent this year, closed 1.7 percent higher after falling for a fifth straight session on Friday to a seven-week low. The mid-cap index <.FTMC> also advanced to close up 1.1 percent.

HSBC (>> HSBC Holdings plc) was the standout performer, jumping 4.6 percent and recording its biggest one-day rise since mid-April, after reporting a rise in its core capital ratio and improving the outlook for near-term dividend payments.

The UK banks index <.FTNMX8350> closed more than 3 percent stronger, the biggest one-day gain in three months.

"If you look at the underlying numbers, actually those showed that if you strip out the one-off items, revenues were up, costs were down and profits were up, and those are three things that markets like," said Laith Khalaf, senior analyst at Hargreaves Lansdown.

Last week, the FTSE 100 recorded its biggest weekly loss since January as markets were hit by jitters before the U.S. presidential election. Nerves settled on Monday, after the FBI said for the second time no criminal charges would be brought after an investigation of Clinton's email.

"A second all-clear for Hillary Clinton from the FBI has seen renewed market confidence that the Democratic nominee will take the White House," said Accendo Markets analyst Henry Croft.

Mining stocks were among the biggest gainers on the index, with Glencore (>> Glencore PLC), BHP Billiton (>> BHP Billiton plc), Antofagasta (>> Antofagasta plc), Rio Tinto (>> Rio Tinto plc) and Anglo American (>> Anglo American plc) all up 3.6 to 6.3 percent as the prices of underlying commodities rose on increased hopes of a Clinton presidency.

Markets are attempting to strike a balance between a Clinton win and the possibility of a sell-off in commodities if Republican Donald Trump is elected.

The UK mining index <.FTNMX1770> surged 3.9 percent.

However, shares in precious metals miners Fresnillo (>> Fresnillo Plc) and Randgold Resources (>> Randgold Resources Limited) were down 3 percent and 1.7 percent respectively as investors dumped perceived safe-haven assets such as gold .

UK grocer Tesco (>> Tesco PLC) also retreated, by 1.1 percent, after Tesco Bank temporarily blocked online transactions. Around 20,000 of its customers had money removed from their accounts in an attack by fraudsters over the weekend.

(Additional reporting by Atul Prakash; Editing by Larry King)

By Kit Rees