LONDON (ShareCast) - Footsie has moved back into the blue as Wall Street jumps in early deals, benefiting from the big drop in oil price.

A barrel of oil is currently down $8.31 to $107.15 as hurricane Gustav was not as bad as originally feared. The Dow is up 224 points in early deals.

British Airways is going well joined in the top 10 by the travel agents Thomas Cook and TUI Travel and the cruise operator Carnival, while budget airline easyJet is among the mid-caps’ best performers.

Conversely, oil stocks are posting big losses. Tullow is leading the fallers while BG and BP are down. Oil services firm John Wood Group is also struggling.

Metal prices also fell, dealing a blow to miners such as Anglo American, Antofagasta and the Kazakh pair ENRC and Kazakhmys.

In the FTSE 250, Persimmon, Taylor Wimpey and Bovis are leading the housebuilders higher on the PM's proposals for a new shared equity scheme and plans for big social housing schemes.

Newspaper groups Trinity Mirror and Johnston Press, which depend on the housing sector for advertising revenues, are also going well.

Brewer and pub owner Greene King says market conditions remain challenging as consumer confidence continues to weaken and consumer expenditure continues to contract, though it expects to meet this year's targets. Retail sales fell by 1.6% like-for-like in the 16 weeks to 24 August, tenancy division profits are down 1.7% while brewing volumes are 3% lower. Belhaven, in Scotland, is doing well, Greene King said.

KBC Peel Hunt has kept the company as a ‘hold’.

Retailers are higher despite a less than complimentary note on the UK fashion sector from JP Morgan. Next is among the risers after JPM maintained its ‘neutral’ recommendation on the stock with a 1,050p target price.

Marks & Spencer is the broker’s least preferred stock in the sector. JPM maintains its ‘underweight’ rating and predicts further earnings downgrades in the next quarter, although the price target goes up to 220p from 200p

Recruiter Hays lifted full year profits by 25% to £264m with underlying operating profits up 13%. Strong international growth drove the improvement, offsetting weakness in the UK and Australia where Hays says demand for temporary placements has flattened and permanent placements are struggling.

Plant hire group Ashtead increased underlying first quarter profits by 26% to £35.9m on sales up by 5% to £259.5m.

Gaming VC says that the party that made a preliminary approach in April does not wish to proceed with an offer at this time. Gaming VC added it is continuing to trade in line with market expectations.

Recruitment group Staffline Recruitment said it expects full year performance for 2008 will be marginally below last year.

Lottery and game play product provider GamingKing has returned from suspension after announcing details of a reverse takeover.

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