GLOBAL MARKETS WEEKAHEAD-Investors fear 3rd leg of credit crisis
By Natsuko Waki
LONDON, March 9 (Reuters) - Tight money markets and tumbling stocks and the dollar will heighten worries for investors this week as pressure mounts on central banks facing what looks like the third wave of a global credit crisis.
Last week, money markets tightened to levels not seen since December, when year-end funding problems pushed lending costs higher across the board.
In response, the Federal Reserve unveiled new measures to ease liquidity strains on Friday -- injecting $200 billion into the banking system -- and said it was in close consultation with central bank counterparts.
However, the Fed failed to lift the mood much. Investors, keen to see if any further plan is in the works to prevent a financial market seizure, will scrutinise words from key central bankers including Fed officials this week.
European Central Bank President Jean-Claude Trichet also speaks a couple of times, including at the meeting of G10 central bankers -- who masterminded a joint cash injection plan last year -- in the Swiss city of Basel on Monday.
"It's another round of the credit crisis. Some markets are getting worse than January this time. There is fear that something dramatic will happen and that fear is feeding itself," said Jesper Fischer-Nielsen, interest rate strategist at Danske Bank in Copenhagen.
"Central banks have shown great resolve to try to solve the problems (on money markets) and I'm sure they will do again."















