Will Brazilian equities get their mojo back under new President Dilma Rousseff, who's battling a strengthening currency?
Brazil's Bovespa exchange rose just 1% in 2010 while many New York-listed stocks like energy giant Petro bras (PBR) dived, even as Brazil's hot economy jumped an estimated 7.4%. The Bovespa surged 83% in 2009, leading the way out of the global financial crisis.
With China a big buyer of Brazilian iron ore, meat, soy beans and sugar, some pundits say the Bovespa may not come roaring back until China's stocks rebound.
China's exchange shed 14% last year. Beijing is tightening monetary policy, which will cool its economy.
Rousseff, meanwhile, is aiming to take a tougher line in trade talks with China amid global currency tensions. Brazil's currency, the real, is up more than 100% against the U.S. dollar since 2003. Brazil's trade, however, has been shifting from the U.S. to China.
