UPDATE 1-Wall St Week Ahead: For stocks, high anxiety rules

(Updates column with G7 statement, Treasury Secretary Paulson's statement on U.S. plan to buy bank stakes)

By Leah Schnurr

NEW YORK, Oct 10 (Reuters) - High anxiety on Wall Street won't subside next week as the deepening credit crunch pushes the global economy into recession and corporate profits increasingly become an afterthought as investors scramble to raise enough cash to weather the credit crisis.

On the heels of a panic-riddled sell-off that caused the Dow industrials and the S&P 500 to plummet for eight days in a row, finance ministers and central bankers from the Group of Seven rich industrialized nations met on Friday to discuss jammed credit markets and the staggering global economy. Over the weekend, bankers from the Group of 20 emerging and industrialized nations also were scheduled to meet in Washington ahead of the International Monetary Fund and World Bank meetings.

While corporate earnings season gets into full swing next week, results will likely be on the back burner as investors struggle to see through the fog of fear that has engulfed the market.

Among financial institutions, JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Stock Buzz), Citigroup (C.N: Quote, Profile, Research, Stock Buzz), and Capital One Financial Corp (COF.N: Quote, Profile, Research, Stock Buzz) are all expected to release results.

Investors also will get a reading on September inflation with the release of the U.S. Producer Price Index on Wednesday and the Consumer Price Index on Thursday. September housing starts are due on Friday.

But concerns that credit markets have not limbered up, despite a spate of moves to free up money from the Federal Reserve and other central banks, will remain the chief focus for market watchers.

"Normally, I would say we are entering earnings season. But this is purely an emotion-driven market," said Owen Fitzpatrick, head of the U.S. equity group at Deutsche Bank Private Wealth Management in New York.

"It's one where people are trying to raise as much liquidity as possible, and I am getting the sense that the severity of the reaction of the past few days tells you that maybe we are getting relatively close to raising enough capital."

On Friday evening, Treasury Secretary Henry Paulson said the United States is planning to buy equity stakes in financial institutions to help recapitalize banks.

WORST WEEK EVER FOR THE S&P 500

This week's coordinated interest-rate cuts from global central banks, including the Fed, failed to put an end to the nosedive in stocks as investor confidence remained severely strained.

It was the worst week on record for the Standard & Poor's 500 Index .SPX, which closed on Friday below the 900 level for the first time in 5-1/2 years. At Friday's closing bell, both the Dow Jones industrial average .DJI and the S&P 500 were down 18.2 percent for the week, while the Nasdaq Composite Index .IXIC was down 15.3 percent.

Since the beginning of October alone, all three major indexes have skidded more than 20 percent.

Analysts said they were hoping to see a coordinated move come out of the G7 to ease the cost for banks to borrow overnight dollars from, or among, each other.  Continued...