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European Stocks Seen Down as Credit Woes Persist

European shares were set to dip in early trade on Monday, adding to Friday's losses, as worries over the impact of a crunch in the credit market remain high despite expectations of a U.S. interest rate cut.

Financial bookmakers, or spread betters, in London expected Britain's FTSE 100 Index to open between 14 and 16 points lower, the German DAX 2 to 15 points lower and the French CAC 40 8 to 10 points lower.

The pan-European FTSEurofirst 300 Index closed 1.1 percent lower, at 1,507.22 on Friday, as British lender Northern Rock became the latest casualty of a global financial crisis, hitting shares of other banks.

Northern Rock's stock plummeted 32 percent on Friday. Government, banking and regulatory officials were monitoring Northern Rock's situation closely and U.K. Finance Minister Alistair Darling has appealed for calm.

The embattled bank has said there is no need for investors or customers to panic and it remains solvent.