Brazil stocks fall after rally, Wall St weighs

SAO PAULO, Oct 30 (Reuters) - Brazil's stocks fell on Friday, taking a breather after a sharp rally in the previous session and mirroring losses on Wall Street.

Sao Paulo's Bovespa index .BVSP shed 1.45 percent to 62,794.49 in choppy trade. On Thursday the index rose nearly 6 percent, its biggest one-day percentage gain in nearly six months, after data showed the U.S. economy, the world's largest, grew for the first time in over a year in the third quarter.

The sluggish trade mirrored that in the U.S. market where investors grappled with data offering a mixed picture on the prospects for the economic recovery.

Brazil's currency, the real (BRBY: Quote, Profile, Research), also weakened 0.69 percent to 1.743 against the dollar.

"The biggest worry for markets today is still on what's going on abroad," said Eduardo Cotrim, Treasury desk director at Banco Modal.

"There is uncertainty as to whether the U.S. Federal Reserve will begin to take some steps towards removing the excess liquidity that it put in the market."

The Fed, along with other major central banks, pumped in billions of dollars into the world economy over the past year as the global financial system grappled with the worst crisis in decades.

More recently, higher-yielding emerging market assets have attracted large amounts of liquidity. An incipient rebound in Brazil helped push the Bovespa index up more than 67 percent this year and the real nearly 34 percent higher.

The government became so worried about what it called "euphoria" that last week it began charging a 2 percent tax on foreign investment into stock and fixed income markets to curb the strengthening of the currency.