European Shares Seen Down as Credit Woes Continue

European shares were seen falling on Monday morning, extending a two-session drop as renewed fears over the impact of the credit crisis continue to weigh on shares of financials institutions.

Financial bookmakers, or spread betters, in London expected Britain's FTSE 100 index to open between 8 and 10 points lower, the German DAX 19 to 34 points lower and the French CAC 40 5 to 25 points lower.

Citigroup Chairman and CEO Charles Prince became the latest casualty from the turmoil in the credit market, resigning on Sunday as the bank said it may write off $11 billion of subprime mortgage losses on top of a $6.5 billion write-down last quarter.

The FTSEurofirst 300 Index of top European shares fell 0.7 percent on Friday, closing at 1,559.87 points, after losing 1.6 percent on Thursday. The two-day slump was triggered by fresh fears that financial institutions have not yet revealed the full impact of the crisis in the credit market on their books.