# FTSE 100 rebounds on China optimism; THG surges after rejecting buyout bid Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-05-20 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: FTSE 100 Rebounds on Chinese Stimulus Meta Description: UK's FTSE 100 bounces back after China's stimulus move, THG surges as it turns down buyout offer and sees interest from property tycoon Nick Candy. URL: https://financedigest.com/ftse-100-rebounds-on-china-optimism-thg-surges-after-rejecting-buyout-bidhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-05-20t075314z2lynxnpei4j084rtroptp4markets-stocks-ftse-1736815698038-compressed.jpg) (Reuters) – UK’s FTSE 100 rebounded on Friday as a move by China to support its economy lifted sentiment at the end of a rocky week for markets, while e-commerce firm THG soared after rejecting a takeover proposal. The blue-chip FTSE 100 index and the domestically focussed FTSE 250 index both added 1.4%, erasing nearly all of their weekly declines. Oil and 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 aid a slowing economy. THG surged 25.6% as it rejected a takeover proposal from two [investment groups and saw buyout interest from property](https://www.financedigest.com/brexit-no-obstacle-as-chinese-overseas-property-investment-doubles.html "Brexit no obstacle as Chinese overseas property investment doubles") tycoon Nick Candy. Data earlier in the day showed British retail [sales jumped](https://www.financedigest.com/indias-tata-motors-jumps-to-a-7-month-high-on-strong-q4-jlr-sales.html "India’s Tata Motors jumps to a 7-month high on strong Q4 JLR sales") unexpectedly in April, but the outlook for consumer spending remained resolutely downbeat as the cost-of-living crunch intensifies. The unexpected upturn in [retail sales could be viewed as a positive](https://www.financedigest.com/uk-retailers-turn-positive-on-sales-hopes-after-bleak-winter.html "UK retailers turn positive on sales hopes after bleak winter") sign that the consumer isn’t as bruised as other data suggests,” AJ Bell financial analyst Danni Hewson said in a note. But digging into April’s figures, the big uptick in food and drink spend in supermarkets might indicate that people are choosing their kitchen tables over pubs and restaurants as they look to [save money.”](https://www.financedigest.com/how-to-save-money-for-a-car.html "How to save money for a car") The domestically focussed midcap index has declined nearly 15% this [year on fears that surging](https://www.financedigest.com/home-battery-sales-in-germany-may-surge-59-this-year-study.html "Home battery sales in Germany may surge 59% this year -study") inflation could tip the economy into recession. The commodity-heavy FTSE 100 has fared better with a small rise so far in 2022, thanks to [surging oil and metal prices](https://www.financedigest.com/explainer-oil-price-surge-changes-ecb-narrative-only-at-the-margins.html "Explainer-Oil price surge changes ECB narrative only at the margins"). The [Bank of England will need to raise interest rates](https://www.financedigest.com/bank-of-england-officials-split-over-future-path-for-rates.html "Bank of England officials split over future path for rates") further to combat the risk of self-perpetuating price rises, its chief economist said in a speech. Among other stocks, M&C Saatchi jumped 34.5% after its independent directors [agreed a deal to sell](https://www.financedigest.com/exclusive-repsol-agrees-to-sell-alberta-oil-assets-to-cppib-backed-teine-energy-sources.html "Exclusive-Repsol agrees to sell Alberta oil assets to CPPIB backed-Teine Energy -sources") the advertising company to consultancy Next Fifteen Communications, saying it offered a superior outcome to a bid from its biggest shareholder. (Reporting by Sruthi Shankar in Bengaluru; Editing by Sherry Jacob-Phillips and Aditya Soni) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---