STOCKS NEWS EUROPE-UK's small cap AIM index outpaces blue-chips

The FTSE Small Caps Index rise 0.2 percent in early trading, while the junior-listed FTSE AIM All Share Index advances by 0.5 percent to beat a 0.3 percent gain on the blue-chip FTSE 100 index.

The FTSE 250 Mid Cap index gains 0.4 percent.

Clothing and fashion company French Connection (LSE: FCCN.L - news) rises 7 percent to 44.50 pence, as brokerage Cantor Fitzgerald raises its price target on the stock to 45 pence from 40 pence a day after French Connection raised its earnings outlook in a trading statement.

"The company has a number of valuable brands including Toast and Great Plains and has a relatively strong balance sheet with group cash forecast at over 20 million pounds at end of January 2014," Cantor Fitzgerald writes in a note.

Oil and gas company President Energy falls 19.5 percent, reflecting the group's decision to raise around $40 million through a share placement. Investment banks RBC Europe and Canaccord Genuity (Other OTC: CCORF - news) are joint bookrunners on the placement and book-build.

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