Ibovespa heads for record weekly loss as fiscal fears and global jitters persist

Brazil's main stock index, the Ibovespa, fell for a fifth consecutive session on Friday, heading toward its worst weekly loss on record amid domestic fiscal worries and adverse global market conditions. The index was down 0.42% in late morning trading, having accumulated a 17.5% weekly decline that could surpass the previous record 15.6% drop from March 2020. Analysts cite the government's lack of a credible fiscal adjustment plan and uncertainty over the 2027 economic team as key domestic factors, compounded by weak corporate earnings abroad and higher oil prices. The selloff occurred alongside declines in U.S. markets and a 1.18% drop in iron ore prices. Company results were mixed, with Vale's profit falling 53% but its shares rising, while Usiminas reversed a year-earlier loss. Investors also monitored the G20 foreign ministers' meeting in Atlanta.