STOCKS NEWS EUROPE-UK small caps close 0.1 pct higher

The FTSE small cap index closes 0.1 percent higher, outperforming a 1.3 percent slide in junior-listed AIM shares, 0.9 percent weaker mid-caps and a drop of 0.6 percent recorded by the blue chips.

Shares in Velocys (Other OTC: OXFCF - news) rise 0.6 percent as the firm, which makes technology for smaller scale gas-to-liquids (GTL (BSE: GTL.BO - news) ) plants, forms a joint venture with Waste Management (NYSE: WM - news) , NRG Energy (NYSE: NRG - news) (NRG) and Ventech Engineers International (Ventech) to develop GTL plants.

"We believe endorsement of the company's technology by companies with established GTL programs could help open the flood gates for sanction of further small-scale GTL projects," analysts at Numis, which has provided investment banking services to the company, say in a note.

Reuters messaging rm://francesco.canepa.thomsonreuters.com@reuters.net