Brazil markets end firmer

Investors drove Brazil's stocks higher on Friday despite a slew of analysts' reports addressing concerns higher US interest rates could crimp investment flows to the nation.
The Sao Paulo Stock Exchange's Bovespa index rose 0.14 percent to close at 21,768.9 points following three sessions of declines. However, for the week, the index dropped 4.2 percent.
Brazil's currency also strengthened, with dollar inflows from exporters keeping the lid on the greenback. The real firmed 0.31 percent to close at 2.909 per dollar.
Citigroup on Friday cut its recommendation on the country's sovereign bonds to "modest underweight" from "overweight."
It was followed by Banc of America, which also told investors to sell Brazilian bonds, citing worries about fiscal prudence.
Brazilian markets tumbled on Thursday, after J.P. Morgan cut its outlook on Brazil's debt and a Merrill Lynch & Co report told investors to shy away from Brazilian sovereign bonds.
"Investors calmed down today. They realised J.P. Morgan's report compared apples and oranges: the government just released figures showing its revenue is substantial and that it will meet targets in the first quarter," said Miguel Daoud, a director at Global Financial Advisor, a consultancy in Sao Paulo.
"Also, since concerns about the US rate outlook were lessened today, markets here were more relaxed, noticing the future is not as bleak as it seems," said Daoud.
Merrill Lynch issued another report on Friday advising investors to trim their exposure to the nation's equities in light of a "more adverse US Treasury market environment."
WestLB was more bullish. It said in a note to clients that it was confident the country would achieve its fiscal targets this year "through improvements in expenditure management."
Traders said stocks were also volatile ahead of Monday's stock options expiration.
Blue-chip Tele Norte Leste Participacoes (Telemar), usually one of the most liquid stocks in the market, fell 0.39 percent at 38.30 reais.
The steel sector was on the spotlight for a second consecutive session on worries China could decide to hike its interest rates, consequently curbing growth and imports.
The Asian powerhouse is one of the largest importers of steel from Brazilian producers such as Companhia Siderurgica Nacional (CSN) and Companhia Siderurgica de Tubarao (CST).
CSN fell 0.56 percent to end at 178.50 reais while CST lost 1.96 percent to close at 102.75 reais.