Around the World's Markets: Sao Paulo

BRAZILIAN SHARES shed some of their gains yesterday afternoon as a strengthening real took the shine off stocks considered cheap in dollar terms.

The Bovespa index retreated from its early 3 per cent surge to close at 9,310 points, still a 1.7 per cent rise over Wednesday's close.

Shortly after the announcement of a hike in the benchmark interest rate to 45 per cent, the real began to strengthen on dollar inflows. The currency firmed to 2.07 to the dollar from 2.11 before the announcement, eroding stock gains.