Latin American stocks fell to a 2-1/2 week low on Friday as worries about Europe's debt crisis and slowing Chinese exports deepened concerns that the global economic recovery could stall. The MSCI Latin American index fell 1.34 percent. The index shed 3 percent this week after gaining ground in the previous three weeks.
--- European debt, Chinese slowdown worry investors
The eurozone debt crisis has rattled markets for more than a year, and discussions about more help for fiscally troubled Greece have dragged on amid speculation the country could default. In addition, China's exports slowed their growth in May as weak US and European demand. The data added to a string of reports showing slowing growth in the United States, Europe and China.
More Chinese data due next week could be key to gauging whether Latin American stocks slump further or find support, analysts said. China is a major consumer of the region's commodities exports. "It needs to be clearer if the slowdown in China ... really hurts global growth more than inflation," said Jose Francisco de Lima Goncalves, chief economist of Banco Fator in Sao Paulo.
Brazil's benchmark Bovespa stock index fell 1.22 percent to 62,697.16, losing about 2.6 in the last five sessions in its worst week since early May. Shares of mining giant Vale, the world's biggest producer of iron ore that counts China as a top customer, dropped 1.11 percent, and energy company OGX shed 2 percent.
Mexico's IPC index dropped 0.77 percent to 34,963.78, though it managed to hold above a support level. The IPC was still higher than an eight-month low hit this week, ending the week down 0.5 percent. US retail sales data due on Tuesday is seen raising the chances of a deeper retreat in stocks as it undermines the outlook for Mexican exports, of which around 80 percent are sent to its northern neighbour.
"The stock market is going to really depend on the data and if it comes out sort of so-so, then stocks could stabilise," said Enrigue Mendoza, an analyst at brokerage Intercam in Mexico City. Stocks have managed to rebound from around the 34,800 point level, but a significant break lower could suggest a much deeper slide for the country's stocks.
Shares of heavyweight America Movil, one of the world's biggest telecommunications companies, fell 0.73 percent. Chile's IPSA index slid 0.52 percent to close at a 1-1/2 month low. The index notched its biggest weekly drop since mid-March in a 2.9 percent slump. Retailer Falabella lost 0.83 percent and industrial conglomerate Copec fell 0.56 percent.
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