The Ibovespa fell 0.7% to close at 172,024 on Tuesday as investors reduced risk at the end of the first half and assessed weaker fiscal and labor market data. Gross public debt rose above forecasts in May, while primary deficit was wider-than-expected. Gross debt reached 81.1% of GDP, above market expectations of 80.7%, the primary deficit totaled R$56.1 billion, exceeding forecasts of a R$53.5 billion shortfall. The deterioration in fiscal accounts reinforced concerns over higher borrowing costs and persistent pressure on interest rates. Meanwhile, formal job creation also missed expectations, with around 73,000 new positions created in May, below forecasts of 115,000. Losses were broad-based across the index. In the banking sector, Banco do Brasil fell 1.7% and Ita