London stocks rose over 1% on Monday, following a sharp selloff last week, as fears of escalating tensions in the Middle East eased and investors looked ahead to domestic and U.S. economic data later in the week.

The benchmark FTSE 100 rose 1.1% as of 0717 GMT, while the mid-cap FTSE 250 gained 0.7%.

Life insurers were the top gainers among sectors in early trade, led by a 2.1% jump in Prudential .

On the flipside, precious metal miners was the only sector in the red, slipping 1.4% as gold prices eased after Iran downplayed the risks of an escalation.

Markets will be focussed on Tuesday's comments from Bank of England's Chief Economist Huw Pill for hints on future rate cuts and the manufacturing and services data for performance of the UK economy.

U.S. personal consumption expenditure price index data is due on Friday.

Shares of Marks & Spencer Group topped the FTSE 100 with a more than 3% jump after Jefferies raised the stock to "Buy" from "Hold" earlier.

Hipgnosis Songs Fund boosted the midcap index with a 10.3% gain as Blackstone made a potential offer to buy the company that owns rights to music by artists including Shakira and Red Hot Chilli Peppers for about $1.5 billion.

(Reporting by Pranav Kashyap and Shubham Batra in Bengaluru; Editing by Mrigank Dhaniwala)