STOCKS NEWS EUROPE-Flat UK small caps outperform around midday

The FTSE Small Cap index is broadly flat around midday, outperforming a 0.3 percent fall by the blue-chip FTSE 100 index and a 0.4 percent decline by the mid-cap FTSE 250 index

Power control components manufacturer XP Power is down 3.6 percent, having at one stage slumped by 7 percent, as it reports lower revenues.

Investec keeps a "buy" rating on XP Power but cuts its price target to 1,150 pence from 1,250 pence while keeping an overall "buy" rating on the stock.

Peel Hunt keeps a "hold" rating on XP Power shares, adding in a research note that "it will take a while for the underlying growth drivers to assert themselves."

Among the gainers, May Gurney Integrated Services rises 7.3 percent after the infrastructure and maintenance company's first-half update reassures investors.

"Following the shock profit warning and the sudden departure of the former CEO last month, the group has tried to reassure the market today with a mildly positive statement (the order book is solid and cash conversion remains robust)," Investec Securities analyst John Lawson writes in a note.

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