STOCKS NEWS EUROPE-UK small caps fall, Majestic Wine loses sparkle

The FTSE Small Cap Index falls 0.3 percent while the junior-listed FTSE AIM All Share Index drops by 0.6 percent, broadly tracking a 0.8 percent fall in the blue-chip FTSE 100 index.

The FTSE 250 mid-cap index is also down by 0.8 percent.

Majestic Wine (LSE: MJW.L - news) slumps by 18 percent to 410.50 pence after the wine retailer warns of challenging trading conditions in a business update. The company also says its 2014 pre-tax profits will be broadly in line with those of the previous year.

The downbeat trading update from the company causes Panmure Gordon to cut its price target on Majestic Wine to 550 pence from 635 pence, although Panmure maintains a "buy" rating on the stock.

Trakm8, a company which designs and manufactures hardware and software components for the security sector, rises 6.5 percent to 57.50 pence after it wins a new 680,000 pound ($1.13 million) order, prompting house broker finnCap to raise its target price on Trakm8 to 60 pence.

($1 = 0.6014 British Pounds)

Reuters messaging rm://sudip.kargupta.thomsonreuters.com@reuters.net