Mexico stocks sink on U.S. worries; peso firms

(Recasts throughout, updates prices)

MEXICO CITY, July 3 (Reuters) - Mexican stocks fell on Thursday as oil prices and weak U.S. data reinforced fears the slowdown in the United States could deepen, while the peso firmed on expectations the Federal Reserve will hold interest rates steady.

The benchmark IPC stock index .MXX closed 0.75 percent lower at 28,465.55 points, while the peso MEX01 <MXN=> firmed 0.13 percent to 10.355 per dollar.

Oil jumped above $145 a barrel before the U.S. Independence Day holiday on Friday when U.S. markets will be closed.

"The impact of oil prices on gasoline costs could be the death blow for the American consumer and the economy could be finally entering a recessionary stage," said Mauricio Brocado, an analyst at Actinver brokerage in Mexico City.

A deeper slowdown in the United States would likely hit the economy in Mexico, which sends around 80 percent of its exports to its northern neighbor.

Adding to the gloom, traders cited a report from The Institute for Supply Management that showed the key U.S. services sector surprisingly contracted in June.

PESO FIRMS

Meanwhile, weak U.S. jobs data reinforced expectations that the Federal Reserve will keep benchmark interest rates on hold in coming months, a Reuters poll showed on Thursday.