The Ibovespa fell 0.4% to 143,608 on Monday as growing fiscal worries, fresh corporate shocks and a thinning of the information backdrop forced investors to reprice Brazilian risk. Talk of expanding income tax exemptions and proposals for free urban transit raised the prospect of larger deficits and heavier borrowing needs, which pushed risk premia higher. Meanwhile, lhe US government shutdown added to the pressure by delaying key macro releases and blurring the Fed’s timing, leaving market participants to rely on partial data while risk premia widened. Sector moves were broad based with WEG (-2%), Banco Santander (-0.8%) and Suzano (-2.4%) among the laggards, while Vale jumped 2.2% on flows into iron-ore exposure and Embraer rose 1.9% after a four-aircraft sale to Sweden. Meanwhile, the central bank’s Focus Survey showed a modest downward revision to inflation expectations, but that relief was not enough to offset the immediate fiscal and corporate headwinds.