* U.S. consumer sentiment rebounds
* Italian bond yields soar to near 8 percent
* Brazil's Bovespa off 1.28 pct, Mexico's IPC up 0.4 pct (Adds comment, updates through close)
By Rachel Uranga and Michael O'Boyle
MEXICO CITY/SAO PAULO, Nov 29 (Reuters) - Latin American stocks traded mixed on Tuesday as analysts said a rebound in U.S. consumer confidence that boosted Mexican equities could be limited as the euro zone's ongoing debt crisis weighs.
Mexico's IPC index .MXX rose 0.42 percent, adding to advances in the previous session to touch a one-week high. But the IPC's 15-day simple moving average helped limit gains for the session, with the index unable to sustain an earlier high above that level.
The increase was not enough to keep the MSCI Latin American stock index .MILA00000PUS from closing in negative territory. It dipped 0.18 percent after jumping to month highs during the last session on hopes European leaders were progressing on efforts to stem the debt crisis that sent Italian bonds to near 8 percent.
"We are not going to return to the pessimism, but people are continuing to wait for news out of Europe," said Gerardo Roman, head of stock trading at Mexico City brokerage Actinver.
Last week Latin American stocks plummeted 8.9 percent in their worst performance since late September as worries persisted that the sovereign debt crisis in Europe could worsen.
The two-year-long crisis has rattled emerging markets and investors are now eyeing a Dec. 9 meeting among euro zone leaders to see if they head toward some form of a fiscal union that could end in joint debt issuance.
Until the much anticipated meeting, stocks will move laterally, Roman added.
Many analysts are skeptical anything will get accomplished.
"This is pure speculation that European authorities are going to announce something more significant in early December. It is just based on market hopes, not any real news," said Arturo Espinosa, a strategist at Santander in Mexico City.
Consumer sentiment in the United States rebounded this month from a 2-1/2-year low. For details, see [ID:nN1E7AS0H6]
The United States is Mexico's main trading partner, consuming the lion's share of Mexican exports.
In Mexico, shares of heavyweight America Movil (AMXL.MX), one of the world's biggest telecommunications companies, led gains with an advance of 0.87 percent.
Brazil's benchmark Bovespa stock index .BVSP dropped 1.28 percent after its closing at its highest in a week during the previous session on hopes for new measures to stem the euro zone's debt problems.
The index could see support at 54,500 and, beyond that, at 53,200, according to analysts at BB Investimentos.
Mining company Vale (VALE5.SA), the world's largest producer of iron ore, led losses with a slide of 1.65 percent.
Steelmakers also dropped, with Usiminas (USIM5.SA) off 6.33 percent, CSN (CSNA3.SA) 4.06 percent and Gerdau (GGBR4.SA) 4.07 percent.
Goldman Sachs analysts cut the estimates for operational earnings and price targets for all three of those steelmakers as the global slowdown could hurt steel pricing. [ID:nN1E7AK03Y]
Chile's IPSA index .IPSA edged up 0.09 percent, reversing early losses but was still unable to keep above the 50-day simple moving average.
Leading Chile electricity generator Endesa END.SN led gains, moving up 1.99 percent.