EMERGING MARKETS-Latam markets drop on euro zone, U.S. data

Thu May 15, 2014 2:10pm EDT

SAO PAULO, May 15 (Reuters) - Latin American currencies and
stocks fell across the board on Thursday as weak economic data
from the euro zone and the United States sapped investor
appetite for riskier assets.
    Data on Thursday showed the euro zone economy grew much less
than expected in the first quarter while U.S. industrial output
fell at its fastest rate in more than 1-1/2 years in April.
  
    "It's looking like a risk-off moment, with the outlook
abroad weighing," said Flavio Serrano, an economist with
Espirito Santo Investment Bank in Sao Paulo. "In general, the
perception is that the recovery in some of the more developed
markets may face some hurdles."
    The MSCI Latin American stock index posted
its biggest one-day loss in a month while Brazil's Bovespa index
 erased the previous session's gains. Losses were
concentrated in widely traded lenders such as Banco Bradesco SA
 and Itau Unibanco Holding SA. Both tend to
attract foreign investors looking for exposure to Brazilian
equities.
    Telecommunications firm Grupo Oi slid 6.5 percent
after reporting a 13 percent drop in quarterly profit.
    Mexico's IPC index fell the most in two months as
investors locked in profits following a recent rally. Shares of
bottling firm Femsa and lender Grupo Financiero
Banorte were both down 2 percent.
    The region's currencies all weakened as investors sought out
safe-haven investments including the U.S. dollar.
    Brazil's real touched its weakest level in over a
week, while Mexico's peso dropped the most in a month.
    Chile's peso weakened for the second day following a
recent rally as investors awaited the central bank's interest
rate decision later on Thursday. Weak economic growth and a
recent spike in inflation have Chile's central bank in a
monetary policy conundrum, though it is widely expected to keep
its key interest rate on hold. 
    
    Key Latin American stock indexes and currencies at 1739 GMT:
    
 Stock indexes                             daily %     YTD %
                               Latest       change    change
 MSCI Emerging Markets            1027.3     -0.48      2.95
                                                    
 MSCI LatAm                      3346.85     -1.75      6.42
                                                    
 Brazil Bovespa                 53605.13     -1.48      4.07
                                                    
 Mexico IPC                        41588     -1.32     -2.67
                                                    
 Chile IPSA                       3934.4     -0.75      6.36
                                                    
 Chile IGPA                     19244.51     -0.62      5.58
                                                    
 Argentina MerVal                6743.09     -2.28     25.08
                                                    
 Colombia IGBC                  13571.52     -1.07      3.83
                                                    
 Peru IGRA                      15714.27     -0.28     -0.25
                                                    
 Venezuela IBC                   2185.75      0.34    -20.13
                                                    
                                                            
 Currencies                                daily %     YTD %
                                            change    change
                                  Latest            
 Brazil real                      2.2250     -0.84      5.92
                                                    
 Mexico peso                      12.963     -0.51      0.52
                                                    
 Chile peso                        553.3     -0.42     -4.92
                                                    
 Colombia peso                   1925.55     -0.29      0.33
 Peru sol                          2.784     -0.07      0.32
                                                    
 Argentina peso (interbank)       8.0625     -0.31    -19.47
                                                    
 Argentina peso (parallel)         10.83     -0.74     -7.66
                                                    
 
 (Reporting by Asher Levine; Editing by Jeffrey Benkoe)
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