EMERGING MARKETS-Latam stocks dip on Brazil energy, Chile banks

* U.S. earnings start could buoy confidence

* Brazil Bovespa down 0.81 pct, Mexico’s IPC up 0.32 pct
(Recasts; adds comment, updates prices through close)

By Lizbeth Salazar and Silvio Cascione

MEXICO CITY/SAO PAULO, April 11 (Reuters) – Latin American
stocks fell on Monday, hurt by sliding energy shares in Brazil
and slumping bank stocks in Chile ahead of an expected interest
rate hike.

Markets could bounce back, however, if U.S. earnings
reports help drive sentiment this week, analysts said.

The MSCI Latin American stocks index (.MILA00000PUS: Quote, Profile, Research) fell
0.59 percent. Investors have been taking profits after the
index rallied nearly 6 percent since late March to hit its
highest last week since June 2008.

After the bell, Alcoa Inc (AA.N: Quote, Profile, Research) reported a first-quarter
profit that beat estimates and said its outlook for the rest of
2011 and beyond remains positive. Solid earnings reports from
major U.S. banks this week may also support demand for riskier

“Earnings reports and economic data in the United States
this week could give stock markets a new boost,” said Gerardo
Copca, a strategist at consultancy MetAnalisis in Mexico City.

The International Monetary Fund said on Monday that price
pressures in much of Latin America posed a challenge to the
region’s robust economic growth. For details, see

Oil dropped more than 2 percent on Monday, falling from
32-month highs and the selloff in U.S. crude futures continued
in post-settlement trade after Goldman Sachs recommended
investors take profits from an extended market rally.

Brazil’s benchmark Bovespa stock index (.BVSP: Quote, Profile, Research) shed 0.81
percent, hurt by a 1.86 percent loss at state oil company
Petrobras (PETR4.SA: Quote, Profile, Research) as a 3.16 percent drop at energy start-up
OGX (OGXP3.SA: Quote, Profile, Research).

Mexico’s IPC index (.MXX: Quote, Profile, Research) rose 0.32 percent, trading back
above its 10-day simple moving average after profit-taking last
week. The Mexican economy is much more closely tied to that of
the United States, so a strong U.S. earnings season could
particularly help Mexican equities.

Shares of America Movil (AMXL.MX: Quote, Profile, Research), one of the world’s
biggest telecommunications companies, put on 0.55 percent,
leading gains in Mexico City.

Chile’s IPSA index (.IPSA: Quote, Profile, Research) slipped 0.4 percent, dragged
down by a 1.29 percent loss in shares of top bank Santander
Chile (STG.SN: Quote, Profile, Research).

Chile’s central bank is expected to raise interest rates by
50 basis points for a second straight month, which could cloud
the outlook for further gains in banking stocks.

EMERGING MARKETS-Latam stocks dip on Brazil energy, Chile banks