EMERGING MARKETS-Brazil stocks retreat after four-session rally
* World markets down after record highs for Dow, S&P * Vale, Petrobras give up recent gains * Brazil Bovespa down 0.66 pct, Mexico IPC down 0.7 pct By Lucas Iberico-Lozada SAO PAULO, July 19 (Reuters) - Brazilian stocks tracked world markets lower on Friday, snapping a four-session rally as profit-taking investors sold shares of commodities producers and banks. Brazil's benchmark Bovespa stock index fell 0.66 percent to 47,342.88 after its longest rally in nearly two months. The index is on track to close the session with a 3.8 percent weekly gain, its best since November of last year. Mexico's IPC index fell 0.7 percent, while Chile's bourse headed for its first loss this week. The Bovespa's losses tracked a dip in global markets after the Dow Jones industrial average and the S&P 500 index reached record highs earlier this week. "It's very straightforward. The entire market, here and abroad, has seen four days of big gains. Now they're adjusting," said Luiz Roberto Monteiro of brokerage firm Renascenca in Sao Paulo. Shares of mining giant Vale SA fell 1.38 percent, erasing gains made in the two previous sessions. Shares of lenders Banco Bradesco SA and state-controlled rival Banco do Brasil fell 1.6 percent and 1.2 percent, respectively. Second-quarter data from Brazil's top-four listed banks may reinforce the view that profitability trends remain fragile, with performance hinging on cost-cutting after revenue from lending-related activities stagnated, a Thomson Reuters poll of analysts showed on Friday. Shares of power utility Centrais Eletricas Brasileiras SA , known as Eletrobras, fell for the fourth straight day, losing 5.1 percent. Most of Eletrobras' workers have been on strike since Tuesday over demands for higher wages, and analysts have warned of weak profits in the second quarter due to high investment costs and low cash flow. Mexico's IPC index dropped 0.7 percent to 39,962.36, with the index on track to post its worst week this month. Shares of telecommunications firm American Movil, owned by billionaire Carlos Slim, fell 0.8 percent and are on track to post their biggest weekly loss in over three months. Chile's IPSA index retreated from an over two-week high as it dropped 0.38 percent to 3,894.94. Shares of retailers Falabella and Cencosud slipped 0.8 percent and 1 percent, respectively. Latin America's key stock indexes at 1443 GMT Stock indexes daily % YTD % Latest change change MSCI LatAm 3,187.70 -1 -15.22 Brazil Bovespa 47,342.88 -0.66 -22.33 Mexico IPC 39,962.36 -0.7 -8.57 Chile IPSA 3,894.94 -0.38 -9.45 Chile IGPA 19,281.07 -0.29 -8.49 Argentina MerVal 3,396.47 0.57 19.00 Colombia IGBC 13,518.74 0.81 -8.13 Peru IGRA 15,450.14 0.86 -25.11 Venezuela IBC 1,249,789. 0 165.10 00
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