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Updated at 1550 GMT

By Khushi Singh and Purvi Agarwal

Sept 9 (Reuters) -London's benchmark FTSE 100 climbed over 1% amid broader gains led by travel and leisure stocks after an upbeat forecast from gambling group Entain, while investors awaited labour market data later in the week.

The blue-chip FTSE 100 .FTSE ended up 1.1%, registering biggest one-day gains in a month. The mid-cap FTSE 250 .FTMC advanced 0.8%, its best day in three weeks.

The travel and leisure stocks .FTNMX405010 rose 1.9%, its highest in six weeks after Entain ENT.L said its online revenue growth in the second half of this financial year was ahead of its expectations. The gambling group was the top gainer on the FTSE 100 with a 5.3% rise.

Bloomberg News reported HSBC HSBA.L was mulling the combination of its Commercial and Investment banking divisions to eliminate overlapping roles at the lender and cut costs. HSBC shares added 1.9%, while the broader banks .FTNMX301010 index was up 1.7%. HSBC declined to comment.

Most major sub-sectors traded higher, with chemicals .FTNMX552010 and automobiles and parts .FTNMX401010 advancing 1.9% and 1.7% higher, respectively.

However, luxury retailer Burberry BRBY.L slipped 4.9% to its lowest price since November 2009, after Barclays downgraded the stock to "underweight" from "equal weight". The broader personal goods .FTNMX402040 index was the top sectoral decliner, down 3.1% as it hit lowest levels in near 15 years.

British restaurant operator Hostmore MOREH.L plunged over 90.8% after it dropped plans to buy pub chain TGI Fridays.

Meanwhile, a survey of recruiters showed that Britain's labour market cooled noticeably last month, which could bolster the case for interest rate cuts from the Bank of England.

Investors are focused on labour market data and gross domestic product figures for the country due this week for more clues on the Bank of England's stance.

The British central bank is widely expected to hold rates at its meeting later this month, while the European Central Bank is expected to cut at its meeting this week.

Reporting by Khushi Singh, Purvi Agarwal in Bengaluru; Editing by Mrigank Dhaniwala and Alison Williams

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