LONDON (ShareCast) - London’s leading index has jumped higher led by building supplies group Wolseley which is rumoured to be considering a sale of its US division.

Travel stocks are also going well, with Thomas Cook and TUI Travel both posting chunky gains.

Insurer Legal and General advances after reporting a 6% rise in first half operating profit, at the higher end of forecasts, as annuity sales grew. Despite a weaker investment market half year operating profit on a European embedded value (EEV) basis rose to £626m compared with £589m in the first half of 2007.

Crude below $120 a barrel gives a boost to British Airways and the cruise operator Carnival, but sends oil stocks lower. Tullow Oil leads the decline, with BG Group, Cairn Energy, BP and Shell also among the heaviest fallers.

Mining stocks fall back in line with lower metals prices. Kazakhstan’s ENRC and Ukraine’s Ferrexpo post substantial losses.

In the FTSE 250, Shares in Michael Page jumped after the recruitment firm admitted it had received an approach from recruitment firm Adecco.

JP Morgan has lowered its rating on the real estate giant Hammerson to ‘neutral’ from ‘overweight’ on valuation grounds.

JP Morgan has lifted its price target on train and bus operator National Express to 1,164p from 1,153p and kept its ‘overweight’ rating on the stock.

Merrill Lynch has raised its rating on the drug group AstraZeneca to ‘neutral’ from ‘underperform’ and raised its target price on the stock to 2,600p from 1,900p.

UK power generator Drax saw profits for the half year slide due to higher coal and carbon costs. The group said it anticipate its full year EBITDA will be modestly higher than £400m, but still lower than 2007 EBITDA of £50m, reflecting a decrease in margins captured for power sales.

Pre-tax profit for the period fell to £150m from £273m previously, as the increases in average achieved power price and power sold were more than offset by higher coal and carbon costs.

Carpetright said group sales decreased 9.2% in the first 13 weeks of its financial year and warned the difficult conditions are likely to persist for the year.

“The trading environment in the UK has become more difficult and we can see this continuing for the rest of our financial year,” said the carpet retailer.

Cookson saw first-half profit rise 45% thanks to its ceramic business and said it expected a strong improvement in its full-year performance.

“For the second half, continued growth in the global production of steel, foundry castings and solar panels should support a further strong improvement in the performance of the Ceramics division, benefiting from a full period contribution from Foseco and from our continuing investment in capacity in higher growth, higher margin areas," it said.

Barclays Bank has agreed to sell Barclays Life Assurance Company Limited to Swiss Reinsurance Company for approximately £753m in cash. The sale is expected to be completed by 31 October 2008, after receipt of appropriate regulatory approvals.

In the press, the Government appeared to pour cold water on Centrica's revival of its proposed all-paper merger with British Energy yesterday by coming out strongly in favour of the languishing EDF deal, says the Independent.

The UK government would block any attempt by Centrica to merge with British Energy, the nuclear group, after the owner of British Gas said it was considering the idea, adds the FT.

The turmoil at BP’s TNK-BP joint venture in Russia deepened as its chief financial officer resigned, blaming the escalating battle for control of the group for his departure, according to the FT.

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