FTSE 100 bounces on weaker pound as no-deal Brexit fears rise; AB Foods jumps

London's FTSE 100 bounced from a near four-month low on Monday as the pound weakened on growing prospects of the UK leaving the European Union without a trade agreement, while Primark-owner Associated British Foods jumped on issuing a strong forecast. Trading volumes are expected to remain muted on Monday with U.S. equity markets closed for a local holiday.

London's FTSE 100 bounced from a near four-month low on Monday as the pound weakened on growing prospects of the UK leaving the European Union without a trade agreement, while Primark-owner Associated British Foods jumped on issuing a strong forecast. Britain has set a deadline of Oct. 15 to strike a free-trade deal with the EU, and if none is agreed both sides should "accept that and move on," Prime Minister Boris Johnson will say on Monday.

The export-heavy FTSE 100, which generally moves in the opposite direction to the pound, was up 0.8% after ending Friday with its biggest two-day slide in nearly a month following a tech-led plunge on Wall Street. Healthcare and financial firms were among the boosts to the FTSE 100 in early trading, while the domestically-focussed FTSE 250 rose for the first time in three sessions, up 0.7%.

Associated British Foods jumped 5.2% as it said it expected full-year profit at its Primark fashion chain to be at least at the top end of its previously guided range after trading in its latest quarter exceeded expectations. Trading volumes are expected to remain muted on Monday with U.S. equity markets closed for a local holiday.