EMERGING MARKETS-Latam stocks slip on U.S. fiscal cliff woes

Thu Dec 13, 2012 5:59pm EST

* Worries about slow U.S. budget talks weigh
    * Brazil Bovespa dips 0.26 pct, Mexico IPC down 0.41 pct


    MEXICO CITY, Dec 13 (Reuters) - Latin American stocks
slipped on Thursday as worries over the lack of a budget deal in
the United States hurt demand for riskier assets.
    Brazilian stocks wilted for the second session in a row as
did Mexican equities, which dipped further back from a record
high hit on Tuesday.
    Anxiety about the drawn-out talks between U.S. lawmakers to
avert automatic tax hikes and spending cuts, set to begin in
2013, grew after downbeat remarks from Republican House Speaker
John Boehner. 
    Investors fear the so-called "fiscal cliff" could tip the
world's biggest economy into recession. The United States is
Mexico's main export destination while it is a top trading
partner with the rest of the region.
    Mexico's IPC index fell 0.41 percent while Brazil's
Bovespa lost 0.26 percent. Chile's main gauge 
edged down 0.07 percent after two days of gains.
    Brazil's state-controlled oil company Petrobras 
shed 1.41 percent while miner Grupo Mexico lost
2.2 percent.
    A Reuters poll showed Brazilian stocks will rise over 7
percent in 2013 while Mexican stocks could climb nearly 10
percent to a new record high next year.  
    But Mexican shares could be vulnerable to profit taking in
the short term. A technical indicator of the IPC known as the
relative strength index remained in "overbought" territory,
indicating stocks may fall further in coming sessions.

    Latin America's key stock indexes at 1403 GMT:
    
 Stock indexes                    daily %  year-to
                         Latest    change   date %
                                            change
 MSCI LatAm             3,723.19    -0.22     3.36
                                           
 Brazil Bovespa        59,316.75    -0.26     4.52
                                           
 Mexico IPC            43,006.31    -0.41    15.99
                                           
 Chile IPSA             4,230.82    -0.07     1.28
                                           
 Chile IGPA            20,717.17    -0.03     2.92
                                           
 Argentina MerVal       2,610.03    -0.03     5.99
                                           
 Colombia IGBC         14,592.83    -0.25    15.22
                                           
 Peru IGRA             20,158.65    -0.56     3.52
                                           
 Venezuela IBC        473,170.03     1.44   304.29
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