STOCKS NEWS EUROPE-UK small caps edge higher, lag blue chips

The FTSE Small Cap index and junior-listed AIM shares rise 0.1 percent and 0.4 percent respectively, lagging the mid-caps, up 0.6 percent, and the blue chips, which rise 1.1 percent.

Topps Tiles (LSE: TPT.L - news) gains 1.6 percent in decent volume after an upbeat trading update that sees a jump in first-half profit.

Volume in the tile retailer stands at 40 percent of its 90-day average a little over two hours into the session, compared to an average across the FTSE Small Cap index of 18 percent.

"Given the strength of the trading performance and confidence within the outlook statement, the shares are likely to react positively this morning," analysts at Oriel Securities write in a note, reiterating a "buy" rating on the stock.

"The company are fully confident of achieving FY profits within market consensus..., but we expect this to drift up towards the upper end of a range."

Casino (Paris: FR0000125585 - news) gaming software provider Quixant (LSE: QXT.L - news) gains 1.7 percent after announcing a 20 percent increase in profit before tax, the commencement of volume production for two new customers and the start of a new design project with a further new client.

"The current order book is double the size it was a year ago. At this rate, Quixant is 'gonna need a bigger boat'," analysts at Numis write in a note, reiterating a "buy" stance on the stock.

"We believe that Quixant is at an early stage of its development and has the potential to greatly expand its outsource manufacturing niche."

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