STOCKS NEWS EUROPE-UK small caps up 0.1 pct in morning deals

The FTSE small cap index is up 0.1 percent in morning trade, while junior-listed AIM shares rise 0.3 percent, outperforming the broadly flat mid-caps.

Greggs (LSE: GRG.L - news) rises 7.9 percent after the British baker returns to sales growth in the fourth quarter, helped by strong Christmas sales. The company - whose offerings include pasties, iced buns and sandwiches - says it was refocusing on its core food-on-the-go business, abandoning a plan to expand into new areas such as cafes

"The year-end trading update is much stronger than we anticipated ... further building on the improved trend seen at the Q3 stage," analysts at N+1 Singer write in a note.

"Prudence influences us to hold-off upgrading expectations at this stage, but we see upside risk on a six month view."

Heritage Oil (Other OTC: HGOCF - news) , meanwhile, gains 4.5 percent after saying reporting increased production from its Nigeria field.

Reuters messaging rm://antonina.vorobyova.thomsonreuters.com@reuters.net