Mexico stocks drop on credit jitters, rate view

MEXICO CITY, July 8 (Reuters) - Mexican stocks fell sharply on Tuesday on concerns that U.S. banks will have to raise more capital and ahead of a report on domestic inflation that may push the country's central bank to raise interest rates.

The benchmark IPC stock index .MXX fell 1.01 percent to 28,096 points. (Reporting by Michael O'Boyle; Editing by James Dalgleish)