July 16, 2012 / 3:58 PM / 5 years ago

EMERGING MARKETS-Latam stocks mixed on U.S. data

 * U.S. June retail sales data disappoint
 * "Empire State" factory index rises in July
 * Brazil Bovespa falls 1.52 pct, Mexico IPC up 0.29 pct
 By Asher Levine and Rachel Uranga
 SAO PAULO/MEXICO CITY, July 16 (Reuters) - Latin American
stocks were mixed o n M onday after data showing an unexpected
fall in U.S. retail sales contributed to a sell-off in Brazil's
Bovespa, while better-than-expected manufacturing data from New
York State supported Mexico's bourse.
 The MSCI Latin American stock index slipped
0.54 percent to 3,512.34.
 Steel makers and commodities producers dragged Brazil's
benchmark Bovespa index down to its biggest loss in four
sessions, while lender Grupo Financiero Banorte 
led gains in Mexico's IPC index. 
 U.S. retail sales fell for a third straight month in June, 
the Commerce Department said o n M onday. Along with recent data
showing a slowdown in job growth and weakening industry, the
data added to concerns that the U.S. economic recovery is
slowing. 
 Worries over the pace of global economic growth tend to
drive investors away from riskier assets such as Latin American
equities in favor of safe-haven investments like the U.S.
dollar.
 "Today the U.S. numbers are weighing most on the market,
even though the losses in markets abroad weren't so sharp," said
Douglas Pinto, a broker with BGC Liquidez in Sao Paulo.
 "Any type of news that impacts markets, here it hits shares
more. It's become an investment strategy, in fact. Everything
falls sharply, but then everyone comes right back in again."
 Brazil's Bovespa index slipped 1.52 percent to 53,503.32.
The index has fluctuated for the past two months between highs
near 57,000 points and lows near 52,500.
 "Investors know the market is volatile. Whatever little
piece of news, whatever sneeze, people can't ignore it," Pinto
said. He added that the scenario will likely continue through
the end of the year, "or at least until we see better growth
numbers in industry and more sustainable growth in the economy."
 Shares of OGX, the oil company controlled by
Brazilian billionaire Eike Batista, fell nearly 5 percent,
weighing most heavily on the index, after analysts at Deutsche
Bank Securities cut their price target and recommendation on the
stock. 
 Shares of credit card payment processor Cielo 
rose 0.79 percent, while those at smaller rival Redecard
 were unchanged. Analysts surveyed by Reuters said
slowing transaction volumes, falling prices and higher expenses
during the second half may weigh on the sector's shares.
 
 Mexico's IPC index gained for a sixth straight day,
rising 0.29 percent to 40,616.76, a record high. A technical
indicator known as the relative strength index crossed into
"overbought" territory, however, indicating stocks may be due to
fall in coming sessions.
 Gains in the index were led by Grupo Financiero Banorte
, which rose 2.17 percent after JP Morgan analysts
raised their price target on the shares to 79 pesos from 66.
 Mexican shares were also supported by data showing
manufacturing in New York state perked up in July after a sharp
drop the month before. 
 "Obviously (U.S. retail sales data) was a negative surprise
for the market," said Luis Rodriguez, an analyst at Finamex in
Guadalajara, Mexico. 
 "On the other hand, New York manufacturing came out positive
and that also affects Mexico," he added, highlighting the close
links between the U.S. and Mexican manufacturing sectors.
 Chile's IPSA index posted its biggest daily gain in
nearly two weeks, rising 0.39 percent to 4,372.67.
 Regional energy group Endesa Chile added 1.14
percent, contributing most to the index's rise, while Banco de
Chile climbed 1.32 percent.
 
 Latin America's key stock indexes at 15:36 GMT:
 Stock indexes                           daily %      YTD %
                       Latest          change     change
 MSCI LatAm                  3,512.34      -0.54      -1.97
                                               
 Brazil Bovespa             53,503.32      -1.52      -5.73
                                               
 Mexico IPC                 40,616.76       0.29       9.55
                                               
 Chile IPSA                  4,372.67       0.39       4.67
                                               
 Chile IGPA                 20,984.84       0.37       4.25
                                               
 Argentina MerVal            2,375.13      -0.26      -3.55
                                               
 Colombia IGBC              13,595.91      -0.50       7.34
                                               
 Peru IGRA                  20,122.72       0.08       3.33
                                               
 Venezuela IBC             249,226.94          0     112.95
                                               
 
 (Editing by Dan Grebler)
 

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