JPMorgan has revised its recommendation on Brazilian stocks, changing it from overweight to neutral.

The reason for this change is the increasing fiscal risks in Brazil, such as a growing budget deficit and the likelihood of rising interest rates.

This decision by JPMorgan follows a similar move by Morgan Stanley, which downgraded Brazilian equities to underweight on November 18.

Morgan Stanley also expressed concerns about Brazil's economic outlook.

The downgrades from these major financial institutions reflect a cautious stance on Brazil's market, as investors consider the potential fiscal challenges.

Both banks are closely monitoring the evolving economic landscape, which could impact investment strategies in the region.