FTSE 100 rebounds on China optimism; THG surges on rejecting bid approach

UK's FTSE 100 rebounded on Friday, tracking an upbeat mood in Asian markets after China cut a key lending rate, while shares of THG soared after the e-commerce company rejected an offer from two investment groups.

UK's FTSE 100 rebounded on Friday, tracking an upbeat mood in Asian markets after China cut a key lending rate, while shares of THG soared after the e-commerce company rejected an offer from two investment groups. The blue-chip FTSE 100 index was up 1.3%, as of 0708 GMT, while the domestically focussed FTSE 250 index added 0.7%. Still, both the indexes were on course for weekly losses.

Oil & gas and banking stocks were the top boosts to the FTSE 100 after China cut a key lending benchmark by a sharper-than-expected 15 basis points to support a slowing economy. Meanwhile, data showed British retail sales jumped unexpectedly in April, but the outlook for consumer spending remained resolutely downbeat as the cost-of-living crunch intensifies.

Earlier in the day, the GfK survey, Britain's longest-running gauge of consumer confidence, fell to its lowest since records began in 1974. Shares of THG surged 30.5% after the company rejected a proposal of 170 pence per share from Belerion Capital and King Street Capital Management and learned that local entrepreneur Nick Candy was considering making a bid.

M&C Saatchi jumped 26.1% after independent directors agreed upon a deal to sell the advertising company to consultancy Next Fifteen Communications, saying it offered a superior outcome to a bid from its biggest shareholder.

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