STOCKS NEWS EUROPE-UK small caps up 0.2 percent midsession

The FTSE Small Caps index is up 0.2 percent around midday, while the blue chips and the mid caps are modestly lower, both down 0.1 percent.

Flybe adds 7.5 percent as Europe's largest regional airline says it performed in line with revised guidance in the second quarter. The company adds that it has now formally signed a contract with Finnair to fly 12 Embraer E190 regional jets on its behalf.

Tethys Petroleum drops 16.4 percent as the explorer reveals preliminary data from its AKD07 appraisal well in Kazakhstan, which traders say looks slightly disappointing.

"Whilst the initial drilling and electric log results show potential hydrocarbons in the Jurassic limestone sequence, the Dyna and Doris sands were found to be water bearing," says Seymour Pierce in a note.

The broker, however, calls the news "a minor setback" and reiterates its "buy" rating and 72 pence price target on Tethys.

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