Around the World's Markets: Sao Paulo

Click to follow
BRAZILIAN SHARES changed course in midday trade as a drop on Wall Street spurred a wave of profit-taking. The Bovespa index was off 2.3 per cent at 7,106, amid reports that the government could cut oil and gas subsidies as part of its austerity plan, expected to be announced today.

Analysts said the second round elections for Brazil's state governors left President Fernando Henrique Cardoso with leeway on the fiscal package after a majority of his supporters were returned.