STOCKS NEWS EUROPE-UK small caps close down 0.8 pct

The FTSE small cap index falls 0.8 percent, in line with the blue chips and outperforming junior-listed AIM shares, down 1.3 percent, and the mid-caps, down 1 percent.

AIM-listed Sterling Energy (Other OTC: STGAF - news) jumps 16.6 percent after the oil and gas exploration and production company says it has agreed with its partners to lift the declaration of force majeure on its Ntem Concession, in offshore Cameroon, to allow exploration activities to proceed.

Also on AIM, shares in Brady (NYSE: BRC - news) drop 6.5 percent after the software provider said 2013 revenues will be impact by the timing of revenue recognition for recently signed contracts and by unfavourable currency movements.

"The combined impact of delayed recognition and recent Krone (Norwegian crown) weakness (circa 50 percent of group revenues are generated in Krone) has resulted in FY 2013 revenues coming in below our expectations," analysts at Panmure Gordon write, downgrading their forecasts and target price but sticking to a 'buy' recommendation.

"However, these are very much lesser evils and we take great confidence from the strong contract momentum the business is enjoying and the fact that increasingly larger deals are being signed."

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