** Shares of some Brazilian financial services companies fall in U.S. premarket trading
** XP XP.O, StoneCo STNE.O, Nu Holdings NU.N, PagSeguro Digital PAGS.N, and Inter & Co INTR.O fall 5.6%, 4.2%, 2.4%, 1%, and 9.7%, respectively
** U.S.-listed shares of Banco Bradesco BBD.N fall 4.9%
** Brazil's government after U.S. markets closed on Wednesday proposed to expand income tax exemptions for lower-income Brazilians and increase taxes on those who earn more
** That frustrated investors who had expected the focus to be on spending cuts, with Brazilian real hitting an all-time low of 6.02 per dollar on Thursday
** Itaú BBA says higher taxes on those who earn more could be worse for legacy banks and investment platforms that are most exposed to these segments
** Brokerage says lower-income players such as NU and BBD could benefit in the near-term, but the mid-term is more uncertain as there are concerns about the potential inflationary pressures the reforms may bring
** U.S. exchanges were closed on Thursday in observance of Thanksgiving holiday
(Reporting by Arasu Kannagi Basil in Bengaluru)
((ArasuKannagi.Basil@thomsonreuters.com;))
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