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Strategies & Market Trends : Telebras (TBH) & Brazil -- Ignore unavailable to you. Want to Upgrade?

To: Steve Fancy who wrote (6955)	8/21/1998 11:53:00 AM
From: Steve Fancy	Respond to of 22640

Brazil stocks crash past barriers in ongoing fall Reuters, Friday, August 21, 1998 at 11:44 RIO DE JANEIRO, Aug 21 (Reuters) - Brazilian stocks crashed past psychological barriers at midday Friday in a nose-dive triggered Thursday by new signs of emerging market problems. The blue-chip Bovespa index (INDEX:$BVSP.X) fell 7.5 percent to 7,393 points at 1200 local/1500 gmt, tracking big declines posted on Wall Street. Including Thursday's plunge, the Bovespa was down more than 12 percent in two days and at its lowest point since January 1997 when it hit 6,998 points. "The drop is showing that investors are feeling very uncomfortable with emerging countries like Brazil," one trader said. Traders said the volatility of the market was exacerbated by low volume, at under 300 million reais at midday. The Bovespa index of 58 leading shares were down 9.3 percent at 7,248 at 1125 local/1425 GMT. The exchange will stop trading for 15 minutes if the drop reaches 10 percent and for one hour if it reaches 15 percent. International markets were rattled by fears that a financial crisis in Russia and Asia was starting to snowball with intense pressure coming on Venezuela on Thursday to devalue its currency, traders said. Other factors like the credibility of U.S. President Bill Clinton and fears of increased terrorism after the U.S. attacked Sudan and Afghanistan was making investors flee emerging markets for safer havens. "No one wants to be here at the moment," another trader said. tracey.ober@reuters.com)) Copyright 1998, Reuters News Service

To: Steve Fancy who wrote (6955)	8/21/1998 11:55:00 AM
From: Steve Fancy	Respond to of 22640

Brazil's forex mkt jumpy on global economic woes Reuters, Friday, August 21, 1998 at 11:30 SAO PAULO, Aug 21 (Reuters) - Brazilian forex markets came under intense pressure on Friday from turmoil in global markets and as the local equities market kept falling without a certain floor, dealers said. The Brazilian real was trading down 0.09 percent at 1.1750 reais to the dollar at midday after opening at 1.1745 reais. "Everybody is pinned to news overseas," said one local dealer. Dealers said the real was currently supported at 1.1750 on rumors that the Central Bank stepped in the market through federal Banco do Brasil, selling dollars. The banks would not comment on the reports. The Central Bank has repeatedly been rumored to have intervened in the market in recent weeks amid turbulence in overseas financial markets. Brazilian stocks were taking a free-fall on Friday, with the blue-chip Bovespa index (INDEX:$BVSP.X) plunging 7.5 percent by midday. Share traders said the nose-dive was triggered by negative news in Russia and speculation that Venezuela may suffer a currency devaluation. Nervousness was also reflected in Brazil's dollar futures market, although dealers said prices were not at alarming levels. September dollar rose 0.04 percent by midday. Copyright 1998, Reuters News Service