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* FTSE 100 up 0.9 pct
* Foreign Sec resignation dents sterling
* Political uncertainty hurts real estate stocks
* BHP up on U.S. shale deal speculation
* Broker upgrade boosts Just Eat(Updates prices, adds details)
By Danilo Masoni and Helen Reid
MILAN/LONDON, July 9 (Reuters) - Britain's FTSE 100 jumpedon Monday after two leading eurosceptic ministers' resignationsdented sterling, with real estate and utilities stocks decliningas uncertainty over Brexit negotiations deepened.
The FTSE 100 rose 0.9 percent in its third straightday of gains, outpacing European peers thanks to the slide inthe pound as markets continued to benefit from Friday's strongU.S. jobs report.
Analysts said the political tensions were no positive forstocks in longer term, despite the currency effect.
Foreign Secretary Boris Johnson quit in protest at a newBrexit plan presented by Prime Minister Theresa May, heapingadded pressure on her less than 24 hours after Brexit MinisterDavid Davis did the same.
Davis said on Monday he would not encourage his colleaguesto try to oust May .
But investors saw Johnson's subsequent resignation as makinga leadership challenge more likely, and bookmakers cut theirodds of an early general election this year.
The FTSE was climbing "for the wrong reasons", a tradersaid, predicting a snap election.
While international, dollar-earning stocks such as BritishAmerican Tobacco and Imperial Brands gainedwith sterling's fall, some domestic sectors suffered as theresignations added to political uncertainty.
Utilities were the worst-performing, with Severn Trentbottom of the FTSE 100, while real estate stocks - seenas especially vulnerable to a messy Brexit - were also bruised.
Real estate agencies Foxtons and Countrywidewere the two worst hit on the small-cap index, down 6.2and 5.1 percent respectively.
Real estate stocks were the biggest drag on the FTSE 250too, with student accommodation group Unite down 1.3percent and property developer Capital & Counties down1.4 percent.
Miners and energy stocks continued to drive the FTSE's rise.
Mining company BHP rose 2.7 percent after Reutersreported that BP was set to buy its U.S. onshore shale oil andgas assets after an offer worth more than $10 billion.
Antofagasta also gained as copper rallied onreceding worries about global economic growth.
Mid-cap precious metal miner Centamin fell 3.3percent after second-quarter gold production fell, disappointinginvestor expectations.
Oil majors Royal Dutch Shell and BP were thebiggest boosts to the index as crude prices climbed.
Inmarsat shares jumped 7.2 percent, after news U.S.satellite group EchoStar does not intend to make anoffer for the British peer, which had rejected a $3.2 billionapproach. Traders cited hopes for another suitorand possible short covering.
Just Eat rose 2.4 percent after RBC upgraded thestock to top pick.(Reporting by Danilo Masoni, editing by Larry King and JohnStonestreet)
