Mexico peso slips on weak U.S. consumer confidence

MEXICO CITY Feb 23 (Reuters) - Mexico's peso slipped on Tuesday and stocks fell after data showed consumer confidence tumbled in February in the United States, hitting optimism for a sustained rebound in Mexican exports.

The peso MXN= MEX01 lost 0.43 percent to 12.86 per U.S. dollar while the benchmark IPC stock index .MXX fell 0.69 percent to 31,813.

The Conference Board said U.S. consumer confidence fell in February to the lowest in 10 months, as consumers' short-term outlook for the jobs market worsened.

Mexico is counting on a rebound in U.S. consumer demand for its exports to support its recovery from a deep downturn in Latin America last year. Mexico sends around 80 percent of its exports to its northern neighbor.

"If our partner does not recover as expected, this definitely hits us," said a trader in Mexico City.

Also weighing down global sentiment was a weaker-than-expected survey on German business sentiment, which hit the euro. The strength of the euro is often a bellwether of investor appetite for riskier assets, like emerging market currencies.

In stock trading, shares in top retailer Wal-Mart de Mexico (WALMEXV.MX) lost 1.44 percent to 60.85 pesos while homebuilder Homex (HOMEX.MX) shed 3.57 percent to 62.38 ahead of its fourth quarter results, expected later on Tuesday. (Reporting by Michael O'Boyle and Jean Luis Arce; Editing by Padraic Cassidy)