STOCKS NEWS EUROPE-UK small caps close higher

The FTSE Small Cap Index rises 0.2 percent while the junior-listed FTSE AIM All Share Index adds 0.4 percent, outperforming a 0.1 percent drop on the blue-chip index and a 0.6 percent fall from the mid-caps.

Newspaper publisher Connect Group (Brussels: CONN.BR - news) - formerly known as Smiths News (LSE: NWS.L - news) - rises 4.3 percent after the company posts higher first-half profits.

Analysts at brokerage Liberum write in a research note that Connect Group's results are a "first step in reassuring a nervous market after a disappointing pre-close" - referring to the company's trading update in March when it guided investors to expect flat first-half profits.

Porta Communications edges up by 0.9 percent as analysts welcome the communications company's move to buy public relations firm Redleaf Polhill.

"The acquisition increases the scale of Porta's activities and will bolster its client list. This will add to the credibility of Porta and aid further its new business activity," analysts at brokerage N+1 Singer write in a note.

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