EMERGING MARKETS-Latam stocks dip as Moody’s warns Spain on debt

* Bovespa down 0.9 pct, Chile’s IPSA up 0.4 pct

* Moody’s warns Spain on possible debt downgrade

* Investors closing out risk near end of year

By Luciana Lopez

SAO PAULO, Dec 15 (BestGrowthStock) – Latin American stocks slid in
early trading on Wednesday, as investors dumped riskier assets
globally after ratings agency Moody’s warned about a possible
downgrade of Spain’s sovereign debt.

The MSCI Latin American stocks index (.MILA00000PUS: ) fell
0.7 percent early in the session after gaining in the two
previous sessions.

“It’s a series of questions today,” said Carlos Camacho, a
fund manager with GAP Asset Management in Rio de Janeiro.

“We’re at a point in the year where people usually take on
less risk,” he said. “Besides that, the Europe issue keeps
spooking people.”

Ratings agency Moody’s warned Spain on Wednesday that its
debt rating could be downgraded, the latest chapter in an
ongoing European debt crisis this year that has roiled
financial markets all through the year. [ID:nLDE6BE0B8]

While smaller economies such as Greece and Ireland have so
far drawn much of the attention, Spain’s economy is much
larger. A Spanish bailout could soak up far more resources and
have deeper implications for economic growth in Europe.

The Moody’s warning affected assets around the world, with
stocks falling and the U.S. dollar gaining against a basket of
major currencies (.DXY: ).

The stronger dollar, in turn, hurt commodities, with the
Reuters-Jefferies index (.CRB: ) down 0.64 percent.

Heavyweight commodity companies led Brazil’s benchmark
Bovespa index (.BVSP: ) 0.9 percent lower shortly after opening,
moving the Bovespa into the red for the year.

Among stocks leading those losses were shares of mining
company Vale (VALE5.SA: ), the world’s largest producer of iron
ore, which gave up 0.71 percent.

State-controlled energy company Petrobras (PETR4.SA: )
retreated 1.08 percent, as crude oil futures (CLc1: ) slid.

Steelmakers also fell, with Gerdau (GGBR4.SA: ) moving down
1.87 percent, Usiminas (USIM5.SA: ) 0.87 percent and CSN
(CSNA3.SA: ) 1.41 percent.

Chile’s IPSA index (.IPSA: ) added 0.4 percent, adding to
gains in the previous session.

Retailers gained, with Falabella (FAL.SN: ) up 1.87 percent
and Cencosud (CEN.SN: ) rising 0.75 percent.

(Editing by Chizu Nomiyama)

EMERGING MARKETS-Latam stocks dip as Moody’s warns Spain on debt