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EMERGING MARKETS-Latam stocks slip on U.S., global growth worries
July 25, 2012 / 5:51 PM / 5 years ago

EMERGING MARKETS-Latam stocks slip on U.S., global growth worries

 * 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
 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
 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
 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)

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