Around the World's Markets: Sao Paulo

BRAZILIAN stocks were sharply lower in early afternoon trading as dips on Wall Street and in Asia sent investors into a spin. By early afternoon the benchmark Bovespa index had fallen 7 per cent to 6,450. Traders said the market was deeply concerned at the uncertainty over President Cardoso's budget and tax plans.

The market has lost over 50 per cent of its value since the Russian financial crisis erupted earlier in the year. Telecom Brazil was yesterday's biggest loser, down 6 per cent on the day.