* Fed report, economic data points to slow U.S. recovery
* Brazil Nov economic growth steady, challenges ahead
* Brazil Bovespa adds 0.1 pct, Mexico IPC up 0.26 pct
By Danielle Assalve and Gabriel Stargardter
SAO PAULO/MEXICO CITY, Jan 16 Latin American
stocks posted modest gains on Wednesday with investors taking a
cautious attitude after a United States Federal Bank report,
alongside positive economic data, painted a mildly optimistic
picture of the U.S. economic recovery.
Brazil's Bovespa stock index spent most of the day
in the red, but closed the session in positive territory after
the U.S. central bank report, coupled with improving U.S.
factory output data, pointed to improving conditions in the
world's top economy.
Mexico's IPC index and Chile's IPSA also
ended the session up.
Domestic data released on Wednesday showed economic activity
in Brazil expanded at a steady pace in November, but analysts
cautioned the rate of growth may not be easily maintained.
Furthermore, the continuing impasse over U.S. debt ceiling
negotiations added to analysts' concerns.
"This issue has weighed on markets, causing today's higher
levels of risk aversion," said analyst Felipe Rocha, from Omar
Camargo brokerage in Curitiba. "Negotiations on the debt ceiling
in the U.S. will remain the main driver for the stock in the
Brazil's benchmark Bovespa stock index added 0.1 percent to
Shares of iron-ore mining firm Vale SA were flat,
while state-controlled oil company Petroleo Brasileiro SA
, known as Petrobras, rose 0.1 percent.
PDG Realty was the main negative influence on the
index, down 4.19 percent, while Itaú Unibanco had the
biggest positive influence, rising 0.88 percent.
Mexico's IPC index ended the session up 0.26 percent
at 44,865.30 points, as a 1.45 percent gain by bank Grupo
Banorte offset a 1.76 percent loss by conglomerate
Chile's IPSA index added 0.54 percent to 4,479.27,
to close at an eight-month high.
Latin America's key stock indexes at 2139 GMT:
Stock indexes Latest Pct
MSCI Latam 3,918.03 0.4
Brazil Bovespa 61,787.35 0.1
Mexico IPC 44,865.30 0.26
Chile IPSA 4,479.27 0.54
Chile IGPA 21,826.91 0.38
Argentina MerVal 3,134.00 1.67
Colombia IGBC 14,750.29 -0.11
Peru IGRA 21,836.92 0.47
Venezuela IBC 477,053.25 -0.15