STOCKS NEWS EUROPE-UK small caps rise 0.2 pct, ahead of FTSE

The FTSE small cap index and junior-listed AIM shares rise 0.2 percent and 0.6 percent respectively, lagging a 0.7 percent rise for the mid-caps but outperforming the blue chips, which trade flat.

British construction equipment rental company Speedy Hire Plc (LSE: SDY.L - news) rises 2.5 percent after a report into accounting irregularities reveals no further problems, confirming issues uncovered in November that led to the exit of Chief Executive Steve Corcoran.

"The forensic review into Speedy Hire's international division confirms no further accounting irregularities. This reassurance helps de-risk the investment case," analysts at Liberum write in a note, reiterating a "buy" rating on the stock and lifting its target price by 18 percent.

"The report's conclusion allows attention to return to the significant upside potential for its UK business through a recovery in non-residential construction and continued self-help."

Pub operator Punch Taverns (Other OTC: PCTVF - news) falls 2.1 percent after saying that a restructuring package needs to be agreed upon by April 15, or else the company will default.

Reuters messaging rm://alistair.smout.thomsonreuters.com@reuters.net