Stocks in Brazil display stronghold after Christmas

December 27, 2012
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Stocks in Brazil

Foreign businesses operating in Brazil will need to develop strong contracts and negotiation tactics when conducting transactions with international companies. By working with a Brazilian law firm, businesses will be able to gain the necessary aid in contract law and other legal resolutions.

With business law differing in Brazil from that of the United States, a Brazilian attorney may help explain the discrepancies between the two legal systems when it comes to contract law.

The Wall Street Journal reported that companies conducting business dealings in Brazil are performing well, as Brazilian stocks opened slightly higher today after the Christmas holiday. However, the last trading sessions are expected to be shortened, as many investors have taken time off for the holiday season.

However, the utilities' stocks in Brazil had tumultuous showings, with shares from power company Eletropaulo Metropolitana Eletricidade de Sao Paulo experiencing a rise in 3.5 percent while electric power utility Centrais Energeticas de Minas Gerais SA illustrating a decline in shares by 2.5 percent.

"The Ibovespa index is not expected to post impressive gains in the coming sessions as it has already gone up 6.3 percent in the month of December," the news source stated. "Year-to-date, Brazil's Ibovespa is up 7.6 percent."

Other financial goings-on in Brazil point to the strengthened currency. Reuters reported that the Brazilian central bank has sold 69 percent of its currency swaps offered in an auction, which has brought more stability to the country's currency.

Businesses conducting transactions in Brazil and investors hoping to gain a strong shareholding within the country would benefit from contacting a Brazilian attorney who can provide legal services defending the interests of foreign clients.

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