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European Shares Set to Fall on Renewed Credit Woes

European stocks were set to drop on Monday on concerns that the global credit crisis could spread, but rising commodity prices may lend support to energy and mining companies.

Financial bookmakers, or spread betters, in London expected Britain's FTSE 100 Index to open between 42 and 46 points lower, the German DAX 34 to 38 points lower and the French CAC 40 34 to 38 points lower.

Oil rose above $92 a barrel, extending last week's gains, as Venezuela threatened to halt oil exports to the United States and a bomb alert shut down one of Britain's largest gas fields. It was a false alarm.

The FTSEurofirst 300 index of top European shares closed 0.5 percent higher at 1,302.36 points on Friday, helped by rallying technology and mining shares, but ended the week down nearly 4 percent on U.S. recession worries and as fresh fears over the fate of bond insurers hammered banking shares.

Japanese markets were closed on Monday for a holiday.