Chile stocks slip, peso hits new 10-yr high

SANTIAGO, March 6 (Reuters) - Chilean stocks fell in afternoon trade on Thursday, as regional and U.S. bourses retreated and local investors worried about impending rate hikes.

The peso hit a new 10-year high against a slumping U.S. dollar as copper, chile's principal export, peaked on world markets.

The all-market IGPA index .IGPA slipped 0.70 percent to 12,888 points, while the blue-chip IPSA index .IPSA fell 0.94 percent to 2,753 points.

Both regional markets and Wall Street fell on Thursday after a report showed U.S. mortgage foreclosures at a record high. In Chile, investors also worried that Wednesday's higher than expected inflation would lead to an interest rate hike as early as this month.

"There's been a change in expectations after yesterday's data and the mood has changed. Everyone is talking about a rate hike and that affects stock prices," said Lorena Pizarro, head of research with the Alfa brokerage.

Of the blue chip shares on the Santiago exchange, 4 traded higher, 6 were unchanged and the remaining 40 issues fell.

Dominant air carrier LAN LAN.SN led indexes lower as its shares fell 3.93 percent to 5,850 pesos a share. Shipper Vapores VAP.SN also declined 1.73 percent.

Endesa Spain regional electric generator Endesa Chile END.SN fell 1.15 percent while investment affiliate Enersis ENE.SN retreated 1.97 percent.

Locally owned generator Colbun COL.SN fell 1.87 percent.