(There will be no Latam-focused emerging market report on
Friday on account of Good Friday. Reuters will resume coverage
on Monday, April 13. The EMEA-focused report will be resumed on
Tuesday, April 14)
    By Susan Mathew
    April 9 (Reuters) - Brazil's real and stocks were poised to
mark their fourth straight session of gains on Thursday as
sentiment globally was boosted by a $2.3 trillion stimulus
package by the U.S. Federal Reserve.
    The program, aimed at back-stopping losses from the economic
fallout of the coronavirus pandemic, focuses on bolstering local
governments and businesses.
    Wall Street indexes jumped, while the U.S. dollar weakened,
boding well for riskier emerging market currencies.
    The real jumped 1% to a two-week high. 
    The Fed's moves "reinforce the view that officials will do
whatever is necessary to prevent financial and credit market
strains from compounding the economic dislocations from
Covid-19," said James Knightley, chief international economist
at ING. 
    Brazil's currency was on course to break a seven-week losing
streak on Thursday, up around 5.5% to mark its best week since
March 2016. Sao Paulo listed stocks were also set for
the biggest weekly gain in four years, up close to 14%.
    But these offset only a fraction of losses so far this year
as an increasing number of lockdowns to curb the spread of the
COVID-19 pandemic worried investors about a looming recession.
    Gains this week were spurred by signs that the number of new
cases and deaths in hotspots in Europe and the United States may
be plateauing. A swathe of massive monetary and fiscal measures
from around the world also buoyed sentiment.  
    Emerging market central banks may need to become the "buyer
of last resort" to ensure that financial markets have sufficient
liquidity in this time of crisis, Brazil's central bank
President Roberto Campos Neto said on Thursday.
    Data on Thursday showed Brazilian inflation slowed sharply
in March, making a stronger case for the central bank to cut
rates yet again to new lows. 
    On the day, the Bovespa stock index rose 0.4%. 
    Financial markets in Mexico, Argentina and Colombia closed
for Easter holidays on Thursday and are to resume trading on
Monday
    In thin trading the offshore Mexican peso rose 2.5% 
as crude prices surged after sources said Russia and Saudi
Arabia are close to reaching a deal on output cuts.

    Oil-producing companies and currencies of crude exporting
countries, such as Mexico, Colombia and Russia
, had crumbled last month when a price war between Saudi
Arabia and Russia triggered a collapse in prices.
    Chile stocks rose 2.3% and were set for their
third straight week of gains, while the currency firmed
0.5%.  
    
    Key Latin American stock indexes and currencies at 1730 GMT:
  Stock indexes           Latest   Daily %
                                   change
 MSCI Emerging Markets     889.31     1.77
                                   
 MSCI LatAm               1707.81     2.84
                                   
 Brazil Bovespa          78945.99     0.41
                                   
 Chile IPSA               3846.61     2.32
                                   
                                          
      Currencies          Latest   Daily %
                                   change
 Brazil real               5.0653     1.51
                                   
 Mexico peso              23.4470     2.32
                                   
 Chile peso                 838.6     0.88
                                   
 
 (Reporting by Susan Mathew in Bengaluru; Editing by Cynthia
Osterman)
  

Source: Read Full Article