Brazilian Equities Down for 2nd Day

Brazil's Ibovespa stock index was down for the second session on Friday, trading around the 110,600 level, with investors weighing the first economic measures of Lula's administration and a slew of corporate earnings from major US banks. Brazilian Finance Minister Fernando Haddad on Thursday announced an ample package of measures with the promise of delivering a fiscal improvement of R$ 242.7 billion in public accounts this year, although he has admitted that the effect could be below expectations. Haddad said the government of leftist President Luiz Inacio Lula da Silva would aim to reduce the 2023 primary deficit, before interest payments, to between 0.5% and 1% of the GDP, or R$ 90 billion to R$100 billion. On the corporate front, Petrobras and other oil companies along with banks were leading the losses, while retailers advanced firmly pushed up by a nearly 10% rebound in shares of Lojas Americanas, after a 77% tumble the day before. The Ibovespa is set to gain 1.5% this week.