* New U.S. home sales drop in June
* EU officials say Greece may need more debt restructuring
* Brazil Bovespa falls 0.24 pct, Mexico IPC down 0.46 pct
By Asher Levine
SAO PAULO, July 25 (Reuters) - Latin American stocks pared early gains on Wednesday as weak housing data in the United States and lingering concern over Europe's debt troubles continued to weigh on the outlook for global growth.
The MSCI Latin American stock index slipped 0.11 percent to 3,441.17 points.
Shares gained early in the session after European Central Bank policymaker Ewald Nowotny offered cautious backing to the idea of giving Europe's new permanent rescue fund a banking license. Such a move would enable it to borrow unlimited central bank money, boosting its capacity to prevent the crisis from spreading.
That rally did not last long, with investor attention shifting to worrying signs over the outlook for global growth.
New U.S. home sales recorded their biggest drop in more than a year in June, dealing a setback for an economic recovery in the United States, while EU officials said Greece had little hope of meeting the terms of its bailout, casting fresh doubt on its future in the euro zone.
"The news today is not encouraging," said Sandro Fernandes, a trader with brokerage Geraldo Correa Corretora in Belo Horizonte, Brazil. "The aversion to risk remains strong, everyone is hesitant... people are putting their money under the mattress."
Brazil's Bovespa index fell for the fourth straight session, losing 0.24 percent to 52,514.72.
Shares of iron-ore giant Vale slid for an eighth straight session, falling 0.88 percent to its lowest level in over two months. The company is expected to post second-quarter results after the market's close.
"The expectations for Vale's results are that they will be quite bad," Fernandes said.
Vale shares sunk 4.7 percent in the previous session on news that the company's Chief Financial Officer would depart the company ahead of the earnings announcement.
Shares of Telefónica Brasil fell 2.27 percent after Brazil's largest wireless carrier posted a 5.6 percent drop in quarterly profit on Wednesday as it faced tougher competition in an increasingly saturated mobile market.
Shares of Itau Unibanco, Brazil's biggest non-government lender, rose 0.17 percent. Executives from the company said on Wednesday they expect loan write offs to remain stable through the rest of the year, in line with a view of stabilizing loan delinquencies and slowing growth in bad credit provisions.
Mexico's IPC index slipped for a second straight session, losing 0.46 percent to 40,511.56.
Telecommunications firm America Movil, controlled by billionaire Carlos Slim, fell 0.56 percent, contributing most to the index's fall.
Mexico's largest airline Aeromexico gained 0.97 percent after it announced on Wednesday it had placed an $11 billion provisional order with Boeing, in what the company said was the biggest aircraft investment by a Mexican airline in that country's history.
Latin America's key stock indexes at 17:34 GMT: Stock indexes daily % YTD %
Latest change change MSCI LatAm 3,441.17 -0.11 -4.37
Brazil Bovespa 52,514.72 -0.24 -7.47
Mexico IPC 40,511.56 -0.46 9.26
Argentina MerVal 2,396.93 0.38 -2.67
Colombia IGBC 13,401.18 -1.16 5.81
Peru IGRA 19,494.30 -0.22 0.11
Venezuela IBC 244,389.27 -0.94 108.82
(Editing by Bernadette Baum)