AROUND THE WORLD'S MARKETS: SAO PAOLO

THE BOVESPA index closed down 6.13 per cent 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.

The index tumbled to a 26-month low, ending the week at 5,837 points. Shares had recovered from losses of more than 12 per cent earlier in the day, a fall which triggered a circuit breaker stoppage. Shares rose later on a slight rebound in US equities.