* IMF warns of market turmoil spreading
* UK house prices shock drop
* Banks lead European shares lower

The International Monetary Fund warned turmoil in credit markets could
spread, posing further losses to banks and cautioned that risks to global
economic growth have increased. It estimated that potential write-downs and
losses to banks had reached $945 billion by March 2008. And Colin McLean, MD
of SVM Asset Management told Reuters the worst was still to come.

Managing Director SVM Asset Management, Colin McLean saying
"We've seen some sharp rallies in the bank sector but I don't think
we've seen the low point that they're going to reach. There are worse points
that they're going to reach and the interbank lending market hasn't really
picked up yet. So I think it is going to take a period of at least several
months if not until the end of the year until we get all the facts out and
then in the future after that the earnings model may be diminished in the
banking sector with more regulation over liquidity requirements and some
changes in business practice. So I don't think they'll necessarily recover to
back to where they were."

The IMF said threats to global financial stability had risen and the
potential for spillovers to emerging markets increased through funding
channels and trade. The IMF also warned that signs of a downturn are becoming
evident in some European housing markets, and said if economic growth slows in
Europe, as forecast by the IMF, repossessions and write-offs will rise.

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And as if on cue, British house prices fell in March at their sharpest pace
since the recession of the early 1990s. The Halifax, the country's largest
mortgage lender said house prices fell 2.5 percent during last month more than
six times as much as analysts had forecast and the largest monthly decline
since September 1992. But some economists are telling people not to panic.

 Mortgage Expert, Ray Boulger saying:
"It's very dangerous to take too much notice of a single month's
figures. In december, for example, Halifax reported a 1.4 percent rise in the
index, which frankly, was complete nonsense. So it's much better to look at
the index over a three-month rolling period rather than a single
month."

But the news raised expectations interest rates will be cut this week.

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European shares extended losses in afternoon trade. The FTSEurofirst 300
index of top European shares was XXXX percent with banks taking the most
points off the benchmark over continuing concerns about the impact of the
credit market crisis and after. BNP Paribas' chief executive said the bank may
not match last year's investment banking revenues as the trading environment
was what he described as "very adverse".

Stefanie McIntyre, Reuters