Chile stocks fall with world markets, peso gains

SANTIAGO, March 26 (Reuters) - Chile stocks slipped in slow trade on Wednesday, following the trend of global markets after news of a drop in U.S. durable goods orders, while the peso made sharp gains against a weaker greenback.

Chile's all-market IGPA index .IGPA retreated 0.92 percent to 13,244 points, while the blue-chip IPSA index .IPSA fell 1.19 percent to 2,855.

Global stock markets were mostly negative after weak U.S. economic data reinforced views of a stalled U.S. economy.

"U.S. durable goods orders were really bad, so global markets are off sharply and we've latched onto the trend," a trader said.

On the Santiago exchange, 29 blue-chip stocks traded lower in sluggish afternoon trade, while three rose and eight were unchanged.

Industrial conglomerate and wood pulp producer Copec COP.SN, weighted at 16 percent of the IPSA, fell 1.61 percent, while leading electricity generator Endesa END.SN retreated 1.57 percent.

Other declines included regional retailer Cencosud CEN.SN, down 1.49 percent, and dominant air carrier LAN LAN.SN (LFL.N: Quote, Profile, Research) with a loss of 1.77 percent.

The peso CHILJ <CLP=CL> advanced 1.03 percent to end the session at 446.00/446.30 per dollar, compared with Tuesday's close at 450.60/450.90.

Traders said the greenback lost ground in world currency markets after weak durable goods data increased the likelihood of further U.S. interest rate cuts.

The peso has gained nearly 12 percent against the dollar so far this year given a widening interest rate differential and supported by record trade surpluses on the back of higher prices for copper, Chile's main export. (Reporting by Manuel Farias; Writing by Lisa Yulkowski; Editing by James Dalgleish)