European markets quiet again in weaker trade

Nick Serff, Market Analyst, City Index commented: "US futures markets gave up some ground in early European trade pulling the DAX and FTSE marginally lower as investors bet that the NASDAQ's 11 day winning streak could come to an end soon.

America's leading technology share index celebrated 10 years since the start of its 2000 crash by posting another day of gains yesterday. The market has been driven higher over the past 3 trading sessions on M&A activity and increased investor appetite for more risky investments.

Mining shares took a slight tumble in London after yesterday's late drop in the price of gold to its lowest level in nearly two weeks. Gold sold off late yesterday, giving up important support at 1120 to trade back down to the bottom of its recent range. Lower investor demand for precious metals could continue after strong inflation data out of China overnight pointed towards the possibility that more monetary tightening could be needed to stop China from overheating.

The fear with Chinese growth is that they may have kept the oven cooking for a little too long and it may be time soon to switch it off with future rate hikes before inflation burns out of control. The limited news this week is giving this fear greater impetus in Europe today.

Thomas Cook shares have seen an increase in demand by traders this morning after yesterdays Investor Day impressed many when the travel firm set an operating margin target of 5.5%-6% in the next 3-5 years. This was a welcome surprise and has turned the stock bullish today, with share prices rising 3% to the top of the FTSE 100 leader board."