STOCKS NEWS EUROPE-FTSE Small Cap Index up 0.8 percent

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09:09GMT 03Nov2008-FTSE Small Cap Index up 0.8 percent

-- --------------------------------------------------- The FTSE Small Cap Index .FTSC rises 0.8 percent, with UK markets awaiting a possible interest rate cut from the Bank of England.

The FTSE 100 Index .FTSE rises 0.6 percent.

Entertainment Rights ERT.L rebounds to gain 20 percent following Friday's sell-off after the company's first-half results.

CMA Global Sterling Fund (CMAEx.L) falls 7.8 percent after the fund manager says the estimated net asset value of the company's shares have fallen over 25 percent in the year to date.

Reuters Messaging rm://david.brett.reuters.com@reuters.net

09:00GMT 03Nov2008-Barclays sags on cost of capital concern

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Barclays (BARC.L) shares sag 7.2 percent to 166 pence on concern that raising capital privately is too expensive and dilutive, with analysts at Merrill Lynch estimating the fundraising may cost investors 3.2 billion pounds.

Barclays is raising 7 billion pounds, mostly from investors in Abu Dhabi and Qatar, and its shares are now down 19 percent since the plan was unveiled on Friday.

"We calculate that Barclays' decision not to raise capital from the UK government may have cost shareholders a potential 3.2 billion pounds," Merrill says in a note, citing the absence of a clawback on convertible shares, the cost of new warrants, the longer duration of the interest payments and fees.

Merrill cuts its price target on Barclays shares to 204p from 235p. UBS cuts its target to 170p from 220p and Deutsche Bank cuts its target to 290p from 310p.

Reuters Messaging rm://steve.slater.reuters.com@reuters.net

08:41GMT 03Nov2008-SolarWorld up on strong Q3 results