Mexico peso, stocks dip as investors trim risk bets

(Rewrites throughout, adds comment and share movement)

MEXICO CITY Nov 20 (Reuters) - Mexican stocks fell on Friday and the peso slipped as investors around the world cut exposure to risky assets and high-yield currencies over worries about the strength of the global economic recovery.

The IPC stock index .MXX dropped 0.4 percent to 30,693 while the peso MXN=MEX01 weakened 0.26 percent to 13.102 per dollar as the U.S. currency rose broadly.

European Central Bank President Jean-Claude Trichet said on Friday it was too early to say the financial crisis was over and warned that banks risked becoming addicted to cheap money from emergency government stimulus programs and must be prepared for its withdrawal.

"Trichet's comments feed the worry a bit that the recovery could be a bit limited if they start pulling out stimulus," said Carlos Alonso, a trader at brokerage Interacciones in Mexico City.

Also hurting assets in Mexico, which sends about 80 percent of its exports to the United States, U.S. homebuilder D.R. Horton Inc (DHI.N) posted a fourth-quarter loss that was wider than expected and said market conditions were "still challenging."

"We have more U.S. housing data next week, and Horton's report suggests the numbers could be weak and this correction could continue," Alonso said.

Doubts about the strength of the U.S. economic recovery could undermine confidence in Mexico's own recovery prospects.

In stock trading, share in miner Grupo Mexico (GMEXICOB.MX) lost 1.38 percent to 30.62 pesos and America Movil (AMXL.MX), Latin Americas biggest cell phone provider, lost 0.48 percent to 30.83 pesos. (Reporting by Michael O'Boyle; Editing by James Dalgleish)