LONDON (AFP) - World stock markets were mixed on Tuesday, with strong gains in Europe and Asia sparked by upbeat results by Goldman Sachs while Wall Street struggled after weak US consumer sales data. In London, the FTSE 100 index of leading shares closed up 0.13 percent to 3,988.99 points, in Paris the CAC 40 gained 0.88 percent to 3,000.22 points and in Frankfurt the DAX rose 1.47 percent to 4,557.01 points. Goldman on Monday posted a first-quarter net profit of 1.81 billion dollars, with earnings per share of 3.39 dollars. That was sharply higher than 1.33 dollars per share forecast by most analysts. US stocks struggled, however, after data showed a surprise drop in March retail sales, stoking concerns about consumer spending and early signs of recovery in the recession-mired economy. The Dow Jones Industrial Average showed a loss of 0.81pc to 7,992.42 at 1550 GMT. The tech-heavy Nasdaq composite fell 0.95 percent to 1,637.58 and the broad-market Standard & Poors 500 index retreated 0.85 percent to 851.47. The Commerce Department said US retail sales dropped a seasonally adjusted 1.1 percent in March, the sharpest plunge in seven months, after gains in the two previous months. A separate report on US wholesale prices tracked a similar pattern, with an unexpected decline in March after two straight months of gains. The Labor Department said its producer price index (PPI) for finished goods fell a seasonally adjusted 1.2 percent in March, instead of the 0.1 percent rise anticipated by analysts. The PPI fell 3.5 percent last month from March 2008, the largest annual decline since January 1950, when the country had a brief bout of deflation. In Europe, European-headquartered banks with exposure to investment banking rose Tuesday on the back of Goldman Sachs results, with Swiss bank UBS ending 15.2 percent higher and French peer BNP Paribas climbing 8.9 percent. Goldmans results confirmed what we already suspected. The first quarter was a good quarter on the back of very strong fixed-income trading, said banking-sector analysts at Merrill Lynch. First-quarter forecasts need to be increased for the European investment banks, they added, The Goldman figures follow similarly upbeat soundings from Wells Fargo that it expects to make a profit in the first quarter, have bolstered sentiment for financial stocks, commented Calyon analyst Stuart Bennett. Fellow US banks Citigroup and JP Morgan are slated to release their earnings figures later in the week. Also in Europe, shares of Dutch conglomerate Philips Electronics recovered from early losses to gain 3.3 percent. The firm reported a slightly bigger-than-expected loss during the first quarter as sales dropped 17 percent, but it lifted its target for annual cost savings to 500 million euros from 400 million euros. In Asia, Hong Kong share prices leapt 4.55pc, driven also by gains in banking giant HSBC and Chinese stocks, dealers said. On the downside however, Tokyo finished 0.92 percent lower, depressed by overnight losses on Wall Street ahead of a raft of corporate earnings results. The global financial crisis has ravaged the banking sector owing largely to huge losses on complex investments in toxic or high-risk debt particularly in the collapsed US subprime home loan market. That has destroyed trust between commercial banks, creating a worldwide credit squeeze, and forced governments around the globe to rescue the sector with huge bailouts.