The smaller tyre will cause the speedo to overread, this is because the smaller diameter means the car covers less distance for each rotation of the wheel, and your car will be basing it's speed calculations based on how many times the wheel rotates.
Likewise, the larger tyre will cause the speedo to underread.
Since you are effectively changing the final drive ratio by doing this, the smaller tyre will also give you slightly better acceleration at the cost slightly lower top speed. Not sure if there will be a difference in fuel consumption.