Global markets retreat

Global markets retreated today as the previous euphoria ignited by data which showed that the Eurozone has officially exited the recession wore off. Investors were initially buoyed by the news as on face value it showed that the troubled area is not economically stagnant. However, once the realisation kicked in that the overall GDP is probably skewed by economic powerhouses such as Germany, and in reality, nations like Greece are still in a dire economic state led to investors panicking and the sell-off began.

However, French shares defied the sell off and enjoyed hitting around a 2-year high. Investors’ optimism was lifted by French GDP data which was came in better-than-expected. Adding to such sentiment was bullish statements from hedge funds over the attractiveness of European equities over their US counterparts. Thus, it seems that although many European headline shares are trading at recent highs, there could still be bargains to be found with European equities.

Risers

William Hill
Numis upgrades William Hill to “buy” from “add”, while keeping its 550p target. The company has paid a full price to establish the current corporate structure, and trading over the next twelve months will give some indication of whether it has been worth it. The World Cup will certainly contribute, as will new gaming machines in some of the shops and the growth in betting on mobile devices.

Rentokil Initial
Rentokil's 1H results are strong, exceeding consensus by 8% at the adjusted pre-tax profit level, according to Panmure Gordon. Asia looks to be the star performer, with the UK also delivering a solid performance. Still, Panmure maintains a neutral stance on the shares.

Bank of Georgia
Bank of Georgia Holdings PLC reported a rise in pre-tax profit for the second quarter and said it is well placed to acheive an increase in business activity expected in the second half. Revenue for quarter ended June 30 was 139.7 million, whilst pre-tax profit was recorded at 60.89 million.

Interserve
Despite reporting a slight fall in first half pre-tax profit, the board have raised the dividend as a sign of confidence in regards to its medium-term strategy and reiterated full year guidance for further progress this year. Additionally, they have announced that its subsidiary, Landmarc Support Services, has been awarded a contract extension worth about 110 million pounds with the Ministry of Defence until July 2014, with the option to extend for up to a further six months until February 2015.

Active Energy Group
Active Energy Group PLC, a supplier of woodchips for green energy Biomass power generation, announced a supply contract with Naples-based biomass energy producer Biomasse Italia SpA, without disclosing financial terms.

Fallers

ENRC
Kazakhstan-focused miner Eurasian Natural Resources Corp have seen the deepest losses within FTSE 100 after reporting a fall in revenue and pre-tax profit for the first half and cancelled its interim dividend amid weak commodity prices and higher costs. Revenue declined 1% to $3.21B whilst pre-tax profit came in at $309M.

Rio Tinto
Rio Tinto PLC said it expects falling output and job cuts at its Warkworth coal mine in eastern Australia, regardless of its appeal against a court decision to block plans to extend the life of the operation. Rio Tinto is disputing claims by some residents of Bulga, near the Warkworth mine in New South Wales state, that expanding the pit would wreck their community. On Wednesday, the Supreme Court in Sydney is due to hear Rio Tinto's appeal against an earlier ruling in favour of the residents' case.

Balfour Beatty
Infrastructure group Balfour Beatty PLC reported a fall into an interim pre-tax loss, but maintained its dividend and said it expects its continuing operations to perform in line with expectations for 2013. Revenue for the half year ending June 28th were £5.1B, with an adjusted operating profit of £52M

Centamin
Egyptian gold miner Centamin PLC reported a rise in pre-tax profit for the second quarter amid record gold production and said that its 2013 guidance is maintained at 320,000 ounces at a cash cost of production of $700 per ounce inclusive of fuel prepayments. Revenue for the quarter ending June 30th was $134.32M, whilst pre-tax profit came in at $51.73M

African Minerals
Seen falling more than any other AIM share, African Minerals have announced that it has accepted the resignation of chief executive Keith Calder, with Bernard Pryor, currently a director of the company, replacing him effective immediately.