4:30 PM London – The UK indexes advanced and retail sales fell sharply in January. Irish wholesale inflation increased in December and Anglo American reported fourth quarter iron ore output rose.

The UK indexes advanced tracking developments in the U.S. and Europe.

U.S. weekly jobless claims and durable goods orders rose more than estimated. However, new home sales fell but leading economic index advanced.

Market sentiment improved after Italy raised the maximum amount it targeted at a bond auction and European leaders struggle to decide size of the rescue fund.

Finance ministers in the euro zone agreed to set up a permanent rescue fund as early June after a 2-day meeting this week but remain far apart with the size of the fund. The leaders hope to set up a fund with as much as €700 billion to €1 trillion but Germany resisted the calls to increase the size above €500 billion.

In London trading FTSE 100 Index gained 51.61 or 0.9% to 5,775.02 and the pound edged higher to $1.5689.

UK Retail Sales Drop

Retail sales in the United Kingdom fell sharply in January, the latest Distributive Trades Survey from the Confederation of British Industry showed today.

Nearly 44% of retailers surveyed said sales volumes fell from last year in January, while 22% recorded an increase, giving a balance of -22%.

Irish Factory Gate Inflation Rises

Ireland''s factory gate inflation grew 2.4% from a year ago in December, following the 1.9% increase in November, data released by the Central Statistics Office showed today.

On a monthly basis, output prices slowed to 0.5% in December, from the 0.9% growth in November.

Gainers & Losers

Anglo American Plc soared 3% to 2,733 pence after the mining company reported fourth quarter iron ore output rose 5% to 12.43 million tons from 11.81 million tons last year. Copper production increased 10% to 170,000 tons.

easyJet Plc surged 10% to 444.10 pence after the low-cost airline reported first quarter total revenue climbed 16.7% to £763 million from £654 million last year.

3i Group fell 1% to 183.20 pence after the leveraged buyout group said earnings performance in some of its portfolio “softened” over the three month period to the end of December.