Latin American stocks fell across the board on Friday on worries the global economy may slow after China reported lacklustre growth and fears over Europe's debt problems resurfaced in Spain. The MSCI Latin American stock index was down 2.03 percent, losing 2.35 percent for the week in its sharpest weekly fall in more than a month.
"There is a lot of volatility out there because investors are still worried about Europe and the global economy," said Andre Perfeito, analyst with Gradual Investimentos in Sao Paulo. In Mexico, traders were puzzled by a drop of 1.7 percent in the index in the 15 minutes before the close. After trading ended, Mexico's exchange concluded that the abrupt drop was caused by a brokerage error and they set to work to adjust the index.
Mexico's IPC stock index officially closed at 39,137, officials said late on Friday. That tally came hours after the surprise fall that saw the index down 2.32 percent to 38,444 points. Indexes that include the IPC also face revision. Latin American stocks have risen about 10 percent this year after a sharp fall in 2011 when the European debt crisis threatened to sink the global economy.
Brazil's benchmark Bovespa stock index was down 1.51 percent on Friday, its fourth drop in five days. The index fell 2.4 percent this week, its fourth consecutive week of losses. Banks Itau Unibanco and Banco Bradesco both fell, losing 3.88 and 2.01 percent respectively.
In Mexico, shares of retailer and bank company Elektra fell sharply for the second straight day after the local exchange announced rule changes that will reduce the company's weighting in the benchmark index. Elektra slipped 16.41 percent. The company's shares account for about 4 percent of the index's weight.
Chile's blue chip IPSA stock index dropped 0.49 percent. The index logged its biggest weekly drop for the year, falling 2.5 percent. The IPSA has been steadily falling, and a trader called it "an expected and healthy correction." The index had closed at an 8-1/2-month high on the first trading day of April.