Brazil's Real Gains as U.S. Stock Futures Recover From Slide

By Drew Benson

Oct. 16 (Bloomberg) -- Brazil's real erased losses as U.S. stock-index futures advanced, easing concern that investors will dump emerging-market assets.

The real climbed 1 percent to 2.2037 per U.S. dollar at 8:58 a.m. New York time, from 2.2265 yesterday, when the currency slumped 5.9 percent.

Brazil's central bank plans to sell as many as 50,000 currency swap contracts at an auction today to help stem the drop. The bank will sell the swaps between 11:45 a.m. and noon New York time, according to a statement.

U.S. stock-index futures advanced, indicating the Standard & Poor's 500 Index will climb after its biggest plunge since the 1987 crash, after a gauge of borrowing costs declined to a four- year low and inflation was less than forecast.

To contact the reporter on this story: Drew Benson in Buenos Aires at Abenson9@bloomberg.net