STOCKS NEWS EUROPE-UK small caps down 0.2 pct at mid-session

UK small caps are down 0.2 percent into mid-session, falling a bit less than the mid-caps and the blue chips.

UK Mail (LSE: UKM.L - news) gains 3.5 percent to 599.6 pence after saying first half revenues will likely be up 7 percent on the year, ahead of previous expectations.

"UK Mail is reaping the benefits of a buoyant UK parcels market, helped by an increase in home deliveries related to online shopping," Investec (LSE: INVP.L - news) analyst John Lawson says in a note, upgrading the price target on the 'buy'-rated stock to 630 pence from 600 pence and raising the pre-tax profit forecast for the 2014 financial year by 10 percent to 22 million pounds ($35.17 million).

Punch Taverns (LSE: PUB.L - news) drops 6.7 percent after posting a 23 percent drop in annual pre-tax profit. This prompts a wave of profit-taking in the stock which had risen 15 percent in the five sessions to Tuesday.

"Full year PBT, at 49 million pounds, is slightly behind ... With the shares having reached our target price and debt restructuring talks ongoing, we are moving our recommendation to 'hold', from 'buy'," analysts at Numis write.

Reuters messaging rm://antonina.vorobyova.thomsonreuters.com@reuters.net ($1 = 0.6256 British pounds)