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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: P.T.Burnem who wrote (26547)	9/4/1998 5:02:00 PM
From: Brad Bolen	Respond to of 94695

Brazil shrs tumble 6.13 pct on big dollar outflows SAO PAULO, Sept 4 (Reuters) - Brazil's Bovespa index closed off 6.13 percent on Friday as reports of huge outflows from the foreign exchange market unnerved investors already concerned about a surge in capital flight from emerging countries. ''Today was a catastrophe,'' said Luiz Carlos Pires, a fund manager at Agenda Brokerage. ''And what's scaring everybody the most is this constant exodus of dollars.'' Sao Paulo's key Bovespa index tumbled to a 26-month low, closing off 6.13 percent at 5,837 points. Shares recovered from losses of more than 12 percent during intraday trading, accompanying a slight rebound in U.S. equities, traders said. SOME TRADERS ALSO SPECULATED THAT OFFICIALS INTERVENED IN STOCK AND FOREIGN EXCHANGE MARKETS TO STABILIZE PRICES IN LATE TRADING. Concern over dollar outflows and Moody's Investors Service's downgrade of Brazilian debt dominated investor sentiment, however. Traders said that well over $1 billion left Brazil in the form of net outflows from the commercial and foreign exchange markets. ''In the afternoon, it looked like around $1.5 billion had left,'' Pires said. ''This is the worst atmosphere I've ever seen, affecting stocks, futures and debt markets alike.''