Brazil stocks slip, real gains in choppy session

(Updates to close)

By Luciana Lopez

SAO PAULO, July 13 (Reuters) - Brazilian stocks closed slightly lower in choppy trading on Monday as investors awaited key data later in the week that could clarify the outlook for a global economic recovery.

The benchmark Bovespa index .BVSP dipped 0.07 percent to 49,186.93 points on a day with no major economic indicators released.

However, data on Brazil retail sales and growth in China are due later in the week, important indicators for Latin America's largest economy. Chinese growth is widely considered a possible engine for reinvigorating the ailing global economy.

Brazil's currency, the real (BRBY), climbed 1.05 percent against the U.S. dollar to 1.981 reais to the dollar. The real had slipped 0.55 percent last Friday.

"So far global indicators show that there's still some doubt, especially in international markets," said Ricardo Tadeu Martins, research manager at Planner Corretora.

The Bovespa index has dropped almost every session since July 2 as investors have grown cautious about a quick recovery to the global economic crisis.

"In the past two weeks our global growth surprise index has remained practically unchanged, with up- and downside surprises offsetting one another," UBS economists Andrew Cates and Larry Hatheway wrote in a note to clients.

Steelmakers' shares fell on Monday, with Usiminas (USIM5.SA) slumping 5.53 percent to 35.51 reais and Gerdau (GGBR4.SA) down 1.79 percent to 18.70 reais.

Limiting declines in the Bovespa index was state-controlled energy giant Petrobras (PETR4.SA), up 0.40 percent to 29.79 reais as crude CLc1 remained nearly flat, ticking up 0.05 percent.

Mining company Vale (VALE5.SA) climbed 0.71 percent to 28.25 reais. Price negotiations between China and global iron ore producers dragged on past the June 30 deadline. Just last week, four Shanghai-based employees of global mining firm Rio Tinto (RIO.AX) were detained on accusations of stealing state secrets. [ID:nPEK360397]

Petrobras and Vale have the biggest weighting in the Bovespa index.

Yields on Brazilian interest rate futures contracts <0#DIJ:> rose, reflecting sentiment that Brazil's central bank may be nearing the end of a spree of reductions in the benchmark interest rate, the Selic.

In June, policymakers sliced the rate to a record-low 9.25 percent, the fourth reduction this year. While policymakers have hinted at room for more cuts they have also stressed future reductions would be made "more parsimoniously."

The yield for the contract due January 2011 DIJF1, among the most highly-traded of the day, rose to 9.89 percent from 9.74 percent.