Mexico peso, stocks hammered by recovery doubts

* U.S. housing data, local reports cast doubt on recovery

* Cemex slumps 6 pct, Homex down nearly 10 pct

* IPC sheds most October gains after six losing sessions (Adds closing stock prices)

MEXICO CITY, Oct 28 (Reuters) - Mexico's peso weakened on Wednesday and stocks sank as sales of new U.S. homes unexpectedly tumbled in September, casting doubt on the strength of the recovery in the United States, Mexico's top trading partner.

Shares in cement maker Cemex and home builder Homex plunged after both companies reported weak third-quarter reports that reinforced worries of a sluggish recovery.

"These reports are making it look like the recovery may not be so strong," said Sandra Tinoco, an analyst at Monex brokerage in Mexico City.

The peso MXN= MEX01 slipped 0.53 percent to 13.3125 per U.S. dollar, while the IPC stock index .MXX closed down 2.19 percent at 28,670.90, marking its sixth straight session of losses that have shaved 7.5 percent off the index.

The losing streak has nearly unwound all of the IPC's gains made this month and put stocks on track to notch their worst week since the beginning of January.

Sales of new U.S. homes fell in September for first time in six months.