* FTSE 100 up 0.2%, FTSE 250 up 0.1%
* Ryanair gains after raising forecast, buoys rivals
* Retailers suffer on weak Christmas updates (Adds company news items, updates share moves)
Jan 10 (Reuters) - London's FTSE 100 gained on Friday as airline stocks took off after Irish carrier Ryanair raised its profit forecast and the broader sentiment improved as tensions in the Middle East subsided.
The FTSE 100 added 0.2% by 0837 GMT, led by a 5% gain in easyJet and 4.1% rise in British Airways owner IAG.
Ryanair's London-listed shares surged 7% to their highest since June 2018 after reporting a better-than-expected performance during the Christmas and New Year travel period.
The FTSE 250 gained 0.1%, but the bourse's advance was limited by an 8% slide in retailer B&M due to slowing sales growth in the Christmas quarter as well as a 5% drop in Watches of Switzerland following a discounted share sale.
Once again, Most retailers came under pressure.
Superdry tanked 20% to its lowest in over a year as sales during the peak holiday period fell short of its expectations due to weaker trading on older product.
Joules Group plummeted 27% to a life low after a profit warning due to a shortage of merchandise during the crucial Christmas period.
It has been a rollercoaster ride for the retail sector as companies issue updates on holiday trading.
While Morrisons and Tesco gave better-than-feared numbers, Sainsbury's and Marks & Spencer have not matched up to market expectations, which led to a share slump in both stocks this week.
With a Brexit showdown in the form of a general election last month interrupting the holiday season and consumer sentiment remaining overall weak, smaller retailers have bore the brunt of the High Street's challenges.
JD Sports shares, which were the best performers on the FTSE 100 last year, bucked the trend on Friday, rising 3% to top blue-chip gainers after upbeat profit forecast.
Among steepest fallers on the FTSE 100 was packaging firm Mondi, which dropped 3% after announcing the departure of its top boss Peter Oswald after nearly three years in the role.
But gains in exporter stocks including British American Tobacco and Diageo boosted the index on the back of a dip in sterling.
The pound remained weak a day after Bank of England Governor Mark Carney hinted a possible interest rate cut.
In a remarkable moment for Brexit, lawmakers approved legislation on Thursday allowing Britain to leave the European Union by the end of this month with an exit deal after over three years of uncertainty over the terms of the departure. (Reporting by Shashwat Awasthi and Muvija M in Bengaluru, additional reporting by Tanishaa Nadkar; Editing by Arun Koyyur)