EMERGING MARKETS-Latam stocks slip, ECB eyed

* Petrobras shares rise on company assurances
* Bovespa off 1.06 pct; Mexico's IPC edges down 0.06 pct

By Rachel Uranga and Danielle Assalve
MEXICO CITY/SAO PAULO, Aug 7 (Reuters) - Latin American
stocks slipped on Tuesday after investors booked profit
following a rally on optimism the European Central Bank would
soon take measures to contain the continent's debt crisis.
The MSCI Latin American stock index declined
0.37 percent to 3,640.03 points.
Latin American stocks jumped nearly 3 percent over the
previous two sessions after the European Central Bank indicated
it may start buying government bonds to help ease financing
pressures on Spain and Italy.
Analysts said investors wanted to see more signs of what
European leaders would unveil before they pushed Latin American
stocks much higher.
"We have not seen light at the end of the tunnel yet," said
Romeu Vidale at Rio de Janeiro brokerage Concordia. "You have
sporadic recoveries in the stock markets, but the markets are
absolutely sure that the problems in Europe have not yet come to
an end."
Brazil's benchmark Bovespa stock index fell 1.06
percent to 57,725.66, led by a 8.45 percent drop in steelmaker
Usiminas.
Shares of TIM Participaçoes, Brazil's
second-largest wireless phone company, declined 3.65 percent
after the Brazilian state of Parana sought to renew a sales ban
due to complaints of spotty service.
State-controlled oil company Petrobras rose 1.66
percent after company executives said on Monday that factors
which caused the company's first quarterly loss in 13 years are
likely to ease in the coming months.
Petrobras, Vale and OGX shares together make up over 25
percent of the Bovespa index by weight, and their woes have
recently dragged down the index, said Daniel Marques, a
technical analyst with Agora Corretora in Rio de Janeiro.
"Petrobras had to deal with the question of government fuel
price policies, OGX dropped 30 percent in a day on
production concerns, Vale's results drove them
lower," Marques said. "But things are starting to improve among
those companies, and people are starting to migrate back into
those more liquid stocks."
In Mexico, the IPC index slipped 0.06 percent to
41,070.24 points, snapping a two-session rise supported by
Friday's better-than-expected U.S. jobs report.
Mexico sends the bulk of its exports to its northern
neighbor, and the upbeat labor report could bode well for its
economy. But enthusiasm waned as investors sought fresh data to
back hopes of an economic recovery in the United States, the
world's largest economy.
"There is not much relevant information this week," said
Luis Rodriguez, an analyst at brokerage Finamex in Guadalajara.
"We have to wait for the next data set that can confirm the
direction the (U.S.) economy is taking."
Cement maker Cemex declined 1.85 percent and
retail giant Wal-Mart de Mexico slipped 0.99
percent ahead of reporting retail sales in July.
After the market closed, Walmex said sales at its Mexican
stores open at least a year rose 1.2 percent last month compared
with the same month last year.
Chile's IPSA index slipped for the second straight
session, as shares of retail holding giant Cencosud
fell 3.25 percent.

Latin America's key stock indexes at 2130 GMT:
Stock indexes daily % year-to
Latest change date %
change
MSCI LatAm 3,640.03 -0.37 1.05

Brazil Bovespa 57,725.66 -1.06 1.71

Mexico IPC 41,070.24 -0.06 10.77

Chile IPSA 4,152.84 -0.89 -0.59

Chile IGPA 20,128.29 -0.7 -0.01

Argentina MerVal 2,451.69 1.18 -0.44

Colombia IGBC 13,429.17 -0.43 6.03

Peru IGRA 19,754.17 0.08 1.44

Venezuela IBC 248,058.30 -0.12 111.95